SEI Knowledge Partnership


Top 10 Operational Risks

Operational risk within investment management firms can stem from many sources. Firms also have varying tolerance levels for accepting or handling such risk. We believe virtually every firm can benefit from taking a fresh look at common areas of risk and consider the variety of relatively straightforward risk management measures that can readily be deployed. In that spirit, this 10-part guide is offered as an effective risk management tool to set the foundation for operational excellence.

You can download the entire book (PDF) or select the chapters that are most relevent to you.

and Table of Contents
Chapter 6:
Playbooks: Workflow Documentation
Chapter 1: 
Complacency: Trivializing and Disregarding Risks
Chapter 7:
Amalgamated Assignments: Improper Segregation of Duties
Chapter 2:
The Blind Leading the Blind: Overextended and Under Qualified Managers
Chapter 8:
Reconciliation Gaps: A False Sense of Security
Chapter 3:
Novices, Apprentices and Soloists: Inadequate Training or Cross-Training
Chapter 9:
Reading the Fine Print: Know Thy Legal Entities
Chapter 4:
Dropped Batons: Information Hand-offs
Chapter 10:
Poor Planning and Slow Response Times: Changes in the Firm, the Marketplace and the Regulatory Environment
Chapter 5:
Naive Reliance on Technology: The Downside of Automation

Operational risk is a grave concern not only to investment management firms, but also to their clients, investors, regulators and trading partners.   We believe effective risk management is the foundation of operational excellence. Ross Ellis, vice president and managing director of the SEI Knowledge Partnership, explains.