Risk management for Alternative Investment Funds under AIFMD

Solutions

Risk management for Alternative Investment Funds under AIFMD

Managing a wide range of risks

The AIFMD framework introduces stringent and new risk management requirements for alternative investment fund managers but does not provide full detailed implementation measures with regards to risk measurement techniques or monitoring procedures. Deloitte can help you face these new challenges.

Implementing organisational and documentation requirements is already challenging in most cases, but identifying and implementing appropriate risk management procedures for alternative asset classes – private equity, real estate, infrastructure, is likely to be an additional significant amount of work for risk managers.

We offer our clients regulatory and quantitative risk solutions so as to facilitate the gradual movement towards new AIFMD requirements. Our services can be articulated over organisational and/or operational dimensions and cover all asset classes:

Scope assessment and gap analysis

  • AIFMD gap analysis, recommendations and implementation roadmap
  • Definition of each AIF’s risk profile and determination of qualitative/quantitative risk limits

Organisation of risk management activities

  • Formalisation of roles and responsibilities, and of the oversight model at BoD level
  • Identification of appropriate risk indicators and techniques
  • Initial due diligence on delegates and drafting of delegates’ monitoring procedures

Development of risk measurement techniques

  • Development of ex-ante quantitative risk techniques for private equity or real estate funds
  • Development of ex-post risk indicators and control plans
  • Design of stress-testing framework
  • Independent risk model validation

On-going risk reporting support

  • Periodic risk reporting to all stakeholders, including regulatory risk reporting
  • Design of synthetic risk dashboard for senior management and directors
     

Contacts

Xavier Zaegel, FRM

Xavier Zaegel, FRM

Partner | Capital Markets/Financial Risk Leader

Xavier is a partner within the advisory and consulting department and is the head of the Capital Markets practice in Luxembourg. As a market and credit risk specialist, he has been leading various ass... More

Sylvain Crépin, FRM

Sylvain Crépin, FRM

Partner | Capital Markets/Financial Risk

Sylvain Crepin joined Deloitte Luxembourg in January 2012 and is Partner in the Financial Risk Management department. He is specialised in risk management advisory and solutions for the investment fun... More