By Chris Kentouris
July 21, 2015
Do you have a policy to prevent cyber breaches?
Do you allow employees to work remotely?
Do you have a policy for valuing hard-to-price assets?
Do you allow multiple parties access to your compliance system?
Do you have a procedure to mitigate risk?
miliar? These are questions drawn from questionnaires that asset-owners — pension plans, endowments and insurance companies, among others — often require fund management shops to complete, before they decide whether or not to invest funds with the shop.
The questions might sound reasonable, but they barely scratch the surface of what is needed to get a concrete idea of how their potential fund manager will handle an operational glitch — whether an everyday error or a stop-the-presses catastrophe. The fact that these questions can be answered with a simple yes or no — without a smidge of clarification — is just the beginning of what’s wrong with them.
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