O'Reilly logo

Hedge Fund Risk Fundamentals: Solving the Risk Management and Transparency Challenge by Ramon Koss, Richard Horwitz

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

CHAPTER 8

Risk Culture

The traditional role of risk management in investment banks, the creators of the function, was that of a “risk cop.” It was a control function that policed traders so that they remained within their risk limits. Risk managers operated as third-party oversight rather than as a team with the trading desks. They were guided by rigid constraints (dogma) rather than a shared goal. Over the years, risk management in these organizations has advanced from being a policing function to being an active participant in decision-making. The risk management functions within these organizations have grown to be “risk strategists.” In this capacity, they serve as active participants in formulating decisions that rationally balance the potential ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required