Lazard takes a holistic approach to risk management, which we define as the process of identifying intended and unintended risks and making informed decisions based on these risks
Risk management at Lazard is a continuous process, involving:
- Identification of exposures and sensitivities;
- measurement (quantification) of exposures and sensitivities (both present and future);
- establishment of appropriate ranges for exposures and sensitivities; and
- execution of adjustments whenever exposures and sensitivities fall outside of target ranges.
What is Unique About Lazard’s Approach to Risk Management?
Lazard’s Risk Management Team is an international collaboration and operates independently of portfolio management teams and the firm’s compliance department. The team provides risk management services for all portfolios under the Lazard Asset Management umbrella. The Risk Management Team has been an integral part of Lazard’s organisation for a number of years, and senior members of the team possess over 100 years of combined experience.
As the Risk Management Team functions independently within the firm, it is considered a front-office function, whereby many other asset management firms treat risk management as a middle- or back-office function. The team utilises external tools that are accepted industry-wide, as well as internally developed, proprietary analytics, to complete its responsibilities, which include:
- Risk Management
- Quantitative Value-added Analysis
- Performance Attribution Analysis
Lazard views risk management as both beneficial to, and a necessary aspect of, sound investment practices. Therefore, the team has regular and ongoing access to senior management and has integrated risk management processes into the daily activities of portfolio managers. Risk management is also integrated into the marketing and client servicing processes to ensure transparency. Senior members regularly meet with potential and existing clients to field questions and clearly convey Lazard’s risk management practices and capabilities.
Lazard takes a holistic approach to risk management, which we define as the process of identifying intended and unintended risks and making informed decisions based on these risks
Risk management at Lazard is a continuous process, involving:
- Identification of exposures and sensitivities;
- measurement (quantification) of exposures and sensitivities (both present and future);
- establishment of appropriate ranges for exposures and sensitivities; and
- execution of adjustments whenever exposures and sensitivities fall outside of target ranges.
What is Unique About Lazard’s Approach to Risk Management?
Lazard’s Risk Management Team is an international collaboration and operates independently of portfolio management teams and the firm’s compliance department. The team provides risk management services for all portfolios under the Lazard Asset Management umbrella. The Risk Management Team has been an integral part of Lazard’s organisation for a number of years, and senior members of the team possess over 100 years of combined experience.
As the Risk Management Team functions independently within the firm, it is considered a front-office function, whereby many other asset management firms treat risk management as a middle- or back-office function. The team utilises external tools that are accepted industry-wide, as well as internally developed, proprietary analytics, to complete its responsibilities, which include:
- Risk Management
- Quantitative Value-added Analysis
- Performance Attribution Analysis
Lazard views risk management as both beneficial to, and a necessary aspect of, sound investment practices. Therefore, the team has regular and ongoing access to senior management and has integrated risk management processes into the daily activities of portfolio managers. Risk management is also integrated into the marketing and client servicing processes to ensure transparency. Senior members regularly meet with potential and existing clients to field questions and clearly convey Lazard’s risk management practices and capabilities.
Lazard takes a holistic approach to risk management, which we define as the process of identifying intended and unintended risks and making informed decisions based on these risks
Risk management at Lazard is a continuous process, involving:
- Identification of exposures and sensitivities;
- measurement (quantification) of exposures and sensitivities (both present and future);
- establishment of appropriate ranges for exposures and sensitivities; and
- execution of adjustments whenever exposures and sensitivities fall outside of target ranges.
What is Unique About Lazard’s Approach to Risk Management?
Lazard’s Risk Management Team is an international collaboration and operates independently of portfolio management teams and the firm’s compliance department. The team provides risk management services for all portfolios under the Lazard Asset Management umbrella. The Risk Management Team has been an integral part of Lazard’s organisation for a number of years, and senior members of the team possess over 100 years of combined experience.
As the Risk Management Team functions independently within the firm, it is considered a front-office function, whereby many other asset management firms treat risk management as a middle- or back-office function. The team utilises external tools that are accepted industry-wide, as well as internally developed, proprietary analytics, to complete its responsibilities, which include:
- Risk Management
- Quantitative Value-added Analysis
- Performance Attribution Analysis
Lazard views risk management as both beneficial to, and a necessary aspect of, sound investment practices. Therefore, the team has regular and ongoing access to senior management and has integrated risk management processes into the daily activities of portfolio managers. Risk management is also integrated into the marketing and client servicing processes to ensure transparency. Senior members regularly meet with potential and existing clients to field questions and clearly convey Lazard’s risk management practices and capabilities.