Kinetic Partners has launched a risk and valuation services (RVS for funds. The aim is to help traditional and alternative managers implement robust and effective risk management systems.

Kinetic Partners, a global professional services company focused exclusively on the asset management industry, said the global financial crisis exposed significant weaknesses in the risk management practices of many funds.

Regulators are demanding stronger risk management. For example, the European Union has added a requirement for funds to provide better risk management reporting in the Ucits IV directive and the draft alternative investment fund management directive.

RVS will provide fund managers with an outsourced risk management solution assessing all risks faced by funds. It combines technical and industry expertise, the experience and ability to provide the necessary services and supporting technology for current and anticipated needs.

The central engine behind RVS is Kinetic Partners’ portfolio and risk management system that covers the relevant risk areas for fund managers. These include market risk (VaR, stress testing and back testing), credit risk management, liquidity and counterparty risk, compliance with investment limits, over the counter independent price verification, performance attribution analysis and leverage exposure.

In addition RVS provides risk management data for risk managers, regulators, auditors and board level executives. This includes risk disclosure reports required by regulators, daily risk reports explaining deviations, abnormal movement notifications or limits breach and tailored summary reports for board meetings and internal reporting.

Kinetic Partners’ RVS will be led by Christian Szylar who joined Kinetic from RBS (Luxembourg) where he was managing director RBS portfolio risk services.

Launched in 2005 as a viable alternative to the Big Four accounting firms, Kinetic has almost 100 professional staff in London, Dublin, Grand Cayman, New York and Geneva. It services over 800 clients.