How can I convince my employer that we need an investment risk manager?

[ArbitUP]

First and foremost you guys are in great hands here at Bionic Turtle. I'm a Certified FRM and I used BT material exclusively.

I'm attempting to convince the head of my firm that we need a dedicated investment risk manager (we have a group that deals with more operational/business related risks, but nothing remotely dealing with investments).

Some background is that we basically do FOF (but many, many models of it) and we manage nearly $40b in such a way. We can do much, much, much better on a risk management front (the opportunities are out there guys!). I'm currently in an above average spot on the totem pole, so I'm not overstepping my bounds too much.

So how should I go about this? I need to be specific about how this role will increase revenue to our firm (ultimately, thats the bottom line). The two broad obvious ways: potentially reducing liability, and improving investment performance.

This is where you guys come in. You are FAR FAR FAR more familiar with the curriculum than I. After a few years I hate to say I don't remember every source, paper, and book nearly as well as I once did. And I know my superiors are going to want detailed, reliable, sources and not just my "opinion". And of course you guys are chest deep in the material right now

Can anyone help me with some ammo I can bring to the table?

 

[ShaktiRathore]

Hi
Investment mgmt just tell u how much risk is their in your investments, we measure toyal money that you potentially can loose in your portfolio. We want to maximise return per unit of risk for portfolio we use severral.measures for these which we study therefore add positions or adjust positions to maximise return per unit risk. So in the end what are we doing is earn as much retuurns by taking minimal amount of risk. Risk mgmt is identifying,measuring and managing potential losses to your portfolio.
Just tell them we save potential loses that is w/o risk mgmt our losses would be 100 but with risk management uor losses are reduced to say 60-70 so we have saved 30-40% of our portfolio value therefore in the end our portfolio value increases ,avoiding losses is like, gain for portfolio ,our portfolio has better value with risk mgmr than w/o it.
Thanks

 

[ArbitUP]

Thanks. I agree with all, which is why I think we need the position!

However i think I need a bit more concrete independent sources that basically described what you said. I basically have to "prove" it.

I Was hoping people more familiar with tbe FRM curriculum could help me with the sources. I passed a few years ago so I'm frankly not as familiar with the details of each source.