Consulting

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A typical engagement will begin with a strategic review of business objectives and functions. Leveraging heavily on the business and operational experience of our consultants who have worked at leading investment management firms, the strategic review will cover investment processes, operations & technology strategy and the organization's competitive landscape. Based on the outcome of these reviews and the strengths/weaknesses identified, stradegi can help the client to draft short, medium or long term plans.


stradegi can also help to prepare a risk-weighted priority list to address some of the issues and recommendations. Based on this priority list, the client can then incorporate elements into their business, operational and technology strategies. If the client so prefers, stradegi can also assist in the actual implementation of the strategic priorities that are eventually approved by the client management.


The team is currently working on a number of engagements to identify relevant best practices, design robust and scalable processes, evaluate strategic initiatives such as outsourcing, develop functional strategies aligned with the overall business direction and establish appropriate governance structures.

Stradegi's capabilities:

organisation operation data benchmark

stradegi has a full suite of investment performance and attribution advisory services right from defining the relevant best practices in performance measurement, reporting and governance to the alignment of fund managers’ KPIs with performance objectives. Stradegi’s experience and services in the performance & attribution function include:

  • Assessment of current governance and process controls to ensure that performance and attribution standards are consistent
  • Definition and optimization of performance and attribution metrics
  • Alignment of fund managers’ KPIs with performance objectives
  • Vendor selection for technology solutions or outsourcing
  • Technical integration to internal and external solutions
  • Internal & external performance analysis & reporting
    Strategy
  • Assist with defining medium & long term strategy for operations & technology
  • Align functional/department strategies with the overall business direction
  • Identify core competencies within the organisation
  • Identify competency/skill gaps, areas of weakness
  • Evaluate & recommend options to close these gaps (in-house vs outsource)
  • Assist with an overall outsourcing strategy
  • Evaluate if support functions can scale to meet future business demands
  • If not, prioritise specific tactical & strategic actions to address this mismatch
    Architecture Review
  • Review the existing application architecture to identify the following hot-spots:

  • There is a solution/system in place
  • The solution is fit for purpose
  • The solution is working effectively
  • There is a solution/system in place
  • But it is either not fit for purpose or is not working effectively
  • There is NO solution/system in place
  • Recommend best-of-breed applications to fill the gap
  • Recommend prioritised implementation plan
    Product/Vendor Evaluation
  • Short-list potential products/vendors to meet specific functional requirements
  • Facilitate the entire Request-For-Proposal (RFP) process on behalf of the client
  • Perform an objective and fair assessment of the short-listed products/vendors and recommend the appropriate solution
  • Assist in contract negotiations with the selected vendors
    Governance
  • Pricing & valuation
  • Outsourcing
    • New outsourcing arrangement
    • Quality assurance over existing outsourcing arrangement
  • Data governance
  • Application development & testing framework
  • Application support framework
  • Service level agreements
    Business Continuity/Disaster Recovery
  • Business impact analysis
    • Identifying critical applications
    • Identifying critical resources within each department
    • Recovery Point Objectives (RPO)
    • Recovery Time Objectives (RTO)
  • Data backup & recovery
  • Alternate DR data center and data replication
  • Operations & technology recovery process
  • Periodic testing & validation of the BC/DR plans

Metrics

Comprehensive quality measurement metrics (statistics) across all aspects of operations, technology and data management. Some sample metrics:


Operations
  • Pricing
  • Third-party provider
  • Valuation
  • Service Levels
  • Cost
Technology
  • Systems availability
  • Application Support
  • Change management
  • Release management
  • Information security
  • Capacity management
  • Service levels
  • Cost
Data
  • Securities/issuers
  • Data validations/cleansing
  • Pricing
  • Vendor statistics
  • Service Levels
  • Cost
Risk-Based Data Management Framework

Good quality investment data and the governance and controls that ensure the integrity of data have become increasingly more important to the investment management industry. The increased regulatory oversight and the introduction of complex new instruments coupled with the ever increasing data points within an organization make it incumbent on data management teams to adopt a risk based approach to defining a data management framework.


In a risk based approach, the entire data landscape is reviewed and assessed to determine the data points that pose the most risk to the organization. Invariably in an investment organization, the data that needs the most attention and poses the most risk is the security reference, pricing, valuation and portfolio static data. Therefore, data management teams spend the majority of their time validating, cleansing and reconciling these data points.


stradegi understands the data issues that affect an investment management organization and can help by recommending and implementing processes, controls and identify potential areas of automation. The objective should be to efficiently manage and deliver quality data to the investment business and mitigate the investment and operational risks inherent with data.


Phased approach to implement a robust Data Strategy

Each firm’s risk management culture, size, scope and geography gives rise to differential practices in how to demonstrate appropriate control in their investment functions. However there are minimum levels of best practice and certain principles of risk management that should be demonstrated in any institution. These standards will also be required by institutional investors, investment consultants and increasingly distributors as part of their due diligence process. stradegi works with clients to define effective investment risk management frameworks to provide management with a clear sight of all the risks they face and effective control processes to ensure independent and demonstrable quantification and management of risks.

Our services include:
  • Definition of relevant market, credit and liquidity risk analytics
  • Investment risk management oversight process and controls
  • Investment risk management in portfolio construction
  • Vendor selection for risk systems
  • Investment risk reporting

stradegi has experience in reviewing and recommending an optimal organization structure based on company goals, objectives and culture. Our approach incorporates the following:

  • Review existing organizational structures within an organisation
  • Extensive experience working with both centralised or federated business models and dual or matrix reporting lines
  • Identify potential bureaucratic impediments in the existing structure
  • Recommend changes or realignment within and across departments to:
  • Increase effectiveness and coordination
  • Decrease confusion, unnecessary complexity and slow decision-making

Our consultants, having been in the industry working at leading investment management firms, are in a unique position to conduct benchmarking and peer reviews. The idea is to evaluate a particular investment management firm against the best-in-class peer organizations and identify significant deficiencies and areas of improvement. Typically, the benchmarking looks at the following:

  • People : are there appropriate people in the organisation with the appropriate skills?
  • Process : are there sufficiently robust processes to ensure the consistency and integrity of the investment workflow?
  • Technology : is the application architecture optimal? Is the technology scalable, efficient and does it mitigate risk in the organization?

  •   8 cross st, level 28
  •      pwc building
  •      singapore - 048424
  •   +65 6850 7851
  •  info@stradegi.com

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