Risk Management
WAYS TO MITIGATE RISK
A DEDICATED RISK MANAGEMENT TEAM
Operating independently of the investment businesses, and reporting to the Executive Board of Directors , our Portfolio Risk and Exposure Group (PREG) guides the allocation of risk capital. It is supported by a dedicated R&D team to create custom tools and technologies. Firefox-Capital’s Risk Management team provides a comprehensive view of the various investment portfolios and how they fit within pre-established guidelines.
RUN RIGOROUS PROCESSES
In pre-trade discussions, the Portfolio Construction and Risk group works to identify the impact of potential trades on a portfolio’s risk and stress exposures. In the ex-post analysis, the group evaluates the skill, infrastructure, investment universe, risk and working capital utilization of each business, and uses this information as a part of the risk capital allocation process.
REINFORCE THE CULTURE
A solid framework is important, but successful risk management can only be accomplished when it becomes a central part of the portfolio manager’s analysis of potential trades and portfolio construction. Continuous communication and collaboration with the investment teams, combined with an in-depth understanding of the portfolios, play a critical role in maintaining and strengthening our risk culture.