ALFI European Risk Management Conference 2018 – Key Takeaways

Risk management, “Asset Management in a disruptive world”
Annual ALFI & ALRiM European Risk Management Conference

The annual ALFI & ALRiM European Risk Management Conference, which took place on 31 May 2018, reaffirmed the importance of risk management for the asset management industry. The conference emphasised that Luxembourg is internationally recognised as a centre of excellence in risk management.

Speaking to more than 230 participants, Camille Thommes (Director General, ALFI) and Luc Neuberg (President, ALRiM) opened the conference by highlighting the strong evolution and the growing importance of risk management in the investment fund industry.

Thereafter H.E. Pierre Gramegna, the Minister of Finance, delivered his opening speech followed by sessions focusing on recent hot topics that could materially impact investments that will be exposed to them: Climate change and Blockchain.

Regarding climate change, the potential impact on investments has been discussed in detail – confirming that it should be taken into consideration in the risk framework.

On Blockchain, the use of that new protocol could reduce risks by helping to track the operations. However, at this stage, on the one hand we still lack experience to properly assess all the risk exposures that could be linked to or driven by it and on the other hand, all the operational impacts.

Industry experts presenting several technical topics in the afternoon (i.e. stress testing, liquidity, alternatives and risk monitoring) included among others: Heidi Makela, Aberdeen Standard Investments, Kai Nemec, Union investments, Aghati Pafili, EFAMA, Svetlana Butvina, Blackrock Luxembourg.

The conference concluded with a much anticipated panel on risk management developments with representatives from the Luxembourg regulator and the EFAMA, tackling issues on standard risk measurement and global risk monitoring.