Risk and Compliance: High Volumes of Work in Asset Management

In the fast-paced world of asset management, compliance with regulatory standards is non-negotiable. With stringent regulations governing the industry, including registered investment advisors (RIAs), the demand for compliance expertise fluctuates with changing market conditions and regulatory requirements. This article explores the importance of flexible risk and compliance human capital in assisting asset managers during times of high work volumes, analyzes the nature of risk and compliance work in the asset management industry, and highlights the role of Regulatory Risks in providing specialized freelance solutions.

The Dynamic Nature of Risk and Compliance in Asset Management

• Regulatory Landscape: Asset managers, including RIAs, operate within a highly regulated environment governed by laws such as the Investment Advisers Act of 1940 and the Securities Exchange Act of 1934. Compliance with these regulations is crucial to maintaining market integrity and investor trust.
• Fluctuating Work Volumes: The workload for risk and compliance professionals in asset management is not static. It fluctuates in response to market volatility, changes in regulatory requirements, and the introduction of new financial products. During times of heightened activity, such as market downturns or regulatory audits, the demand for compliance expertise spikes.

The Need for Flexible Risk and Compliance Human Capital

• Scalability: Asset management firms often face challenges in scaling their compliance teams to meet fluctuating work volumes. Hiring full-time employees may not be cost-effective or practical during peak periods. Flexible risk and compliance human capital offer a solution by providing on-demand expertise tailored to the firm’s needs.
• Specialized Expertise: Compliance requirements in asset management are complex and constantly evolving. Freelance compliance consultants bring specialized knowledge and experience to address specific regulatory challenges, ensuring compliance with industry standards and best practices.

Analyzing Risk and Compliance Work in Asset Management

• Compliance Monitoring: Asset managers must continuously monitor and assess compliance with regulatory requirements, including filing periodic reports and maintaining accurate records of client transactions. This ongoing monitoring requires dedicated resources and expertise.
• Risk Management: Identifying and mitigating risks is a fundamental aspect of asset management compliance. Risk and compliance professionals collaborate closely to evaluate potential risks, implement controls, and develop contingency plans to safeguard investor assets and maintain regulatory compliance.

Fluctuating Work Volumes: A Statistical Analysis

According to industry data:

• During regulatory examinations, asset managers experience a surge in compliance-related tasks, with an average increase of 30-40% in workload.
• Market volatility events, such as the COVID-19 pandemic, lead to a spike in compliance activities, including risk assessments and scenario planning, with a 50% increase in workload reported by some firms.
• New regulatory initiatives, such as the implementation of the European Union’s MiFID II regulations, require asset managers to allocate additional resources to ensure compliance, resulting in a 20-30% increase in workload.

Leveraging Regulatory Risks for Flexible Solutions

Regulatory Risks is a specialized risk and compliance freelance marketplace that offers asset managers access to a pool of experienced compliance consultants and professionals. Here’s how the platform can assist asset managers:

• On-Demand Expertise: Asset managers can hire compliance consultants on an as-needed basis to support their compliance efforts during times of high work volumes, without the commitment of long-term contracts.
• Tailored Solutions: Regulatory Risks connects asset managers with freelance compliance professionals who possess the specific expertise required to address their compliance challenges, ensuring efficient and effective solutions.

Conclusion

In the asset management industry, the need for flexible risk and compliance human capital is paramount to navigating fluctuating work volumes and regulatory complexities. Regulatory Risks provides asset managers with access to specialized freelance solutions, enabling them to augment their compliance teams with on-demand expertise when needed. By leveraging the platform, asset managers can ensure regulatory compliance, mitigate risks, and focus on delivering value to investors in a dynamic and ever-changing market environment.

Regulatory Risks is a freelance marketplace that connects your business with chief compliance officers, compliance consultants and compliance services in the market. Whether you need a chief compliance officer for a short-term project or longer-term compliance jobs, Regulatory Risks is your firm’s on-demand flexible specialist resourcing solution.

The Regulatory Risks platform is easy to use, secure and transparent. You can browse through profiles of vetted and verified compliance consultants and schedule video interviews. Hire a compliance officer today.