Risk Management: The Pros And Cons Of Building Your Own System

By Aleksey Matiychenko and Alexander Makeyenkov -- Risk management is in vogue these days. The crisis of 2007-2008 has in many ways been blamed on the failure of risk managers to predict the stress that we have all now lived through. With global markets rebounding and hedge funds posting positive results, the discussions about improving risk management policies and systems are taking place at many hedge funds.