Risk Management

MC Square’s risk management and investment compliance services facilitate active management. With early recognition and evaluation of risks, we ensure full regulatory risk and investment restrictions compliancy. In addition, we believe that in order to deliver the support you need, our team will work as an extension of your team.

We provide a range of independent risk management solutions, including risk management oversight, outsourced independent risk management functions, oversight of delegations, and coordination and communication with appointed third parties and regulators.

Risk management support services are performed by a specialized team of risk analysts which is independent of the operational department. The asset management function, in particular, is separated from the risk management support services. These services are fully dedicated to risk management with a particular focus on UCITS and AIF requirements.

MC Square’s risk management services include the identification, measurement and management of the risks to which funds may be exposed, including global exposure either via commitment approach for non-complex sub-funds, global exposure via Value at Risk approach for complex sub-funds, including back-testing and stress testing, liquidity risk monitoring and reporting, counterparty risk and operational risk.

MC Square’s investment compliance services include the regular monitoring of a fund’s portfolio to ensure compliance with the investment restrictions defined by the 2010 Law and 2013 Law, and fund-specific investment restrictions and objectives as stated in the prospectus. We facilitate the timely and accurate monitoring of these restrictions and reporting to the fund manager.

The benefits clients obtain from these services are:

  • A detailed analysis covering all types of risks.
  • Risk indicators tailored to the fund’s strategy: Equity, Mixed, UCITS Like, PE, RE, Infra.
  • Risk management coordination, oversight and risk reporting.
  • Compliance monitoring adapted to the fund regulation and your internal structure.
  • Coordination and oversight of delegated function.
  • Customized client and regulatory reporting.