In today’s post-Madoff era, investment advisors are under increased pressure to prove that they are adhering to:

• Client directives and restrictions
• Stated policies as advertised by management to attract business, including Form ADV and prospectuses
• Industry and government regulations

The challenge for Chief Compliance Officers is to understand the risks associated with each of these three drivers of compliance and how they can be mitigated. Risk is not isolated; it arises throughout the investment workflow, from the initial contact between the firm and the client through to the final reconciliation with the custodian statements. This white paper discusses:

• Reducing Risk Wherever It Occurs
• Understanding Risk and the Drivers of Compliance
• Technology Investment by Firm Size
• Take a “Risk Inventory” of Your Workflow
• Five Red Flags to Watch Out For
• Compliance Criteria in Technology Decisions
• Meeting the Risk Management Challenge