Attention to risk and ways of mitigating it remains critical for hedge funds and their use of technology. However, one of the most compelling areas of growth is rooted in the way a fund interacts with its clients and the impact technology can have on that relationship.
Attention to risk and ways of mitigating it remains critical for hedge funds and their use of technology. However, one of the most compelling areas of growth is rooted in the way a fund interacts with its clients and the impact technology can have on that relationship.
George Ralph, Global Managing Director & CRO, RFA observes how a lot of the technology fund managers are using is about how to provide the level of comfort their investors and regulators are comfortable with.
“It’s the day to day we need to worry about right now. Macro tech is the future of how we define conversations around emerging technologies. Core practices around public cloud, risk and digital experience will stand a firm in good stead and deliver a great grounding to expand and scale in the future,” he says, “Although macro tech takes us way beyond encompassing blockchain technology and also cognitive experience, for most right now, digital reality is a consideration for the future, but it should still be on a funds radar.”
He highlights that the way a fund interacts with their client and what the result of that is in terms of relationships is a really exciting part of what the future looks like in the alternative investment sector.
Retaining the focus on risk
However, as the world moves towards these developments, the focus on risk remains key. Ralph outlines: “We have seen a relentless barrage of press around cyber risk and as funds have gone through the process of digitisation managing risk has been key. At RFA we have been talking for some time about mitigating risk of attack.”
There are many processes hedge funds can put in place to help reduce the likelihood of any breach of their own systems. The way they approach their overall IT infrastructure from public cloud upwards is vital. Ralph advises: “Process and procedure are key. Then you need to start thinking about what your firm needs to mitigate risk. Different access levels for different users in a must. Using collaboration tools correctly and securely will really reduce your risk of attack.
“Finally, work with an outsourced provider which has specialist teams with the experience to handle managing your cyber security defences, from managed detection and response and a security operations centre which can support your firm and deliver reporting on your systems that help you mitigate against cyber-attack. Fund manager firms are, mostly, at the start of their macro tech experience and getting the basics in place like attitude to risk and a robust cloud set up is a good starting point and the place where further tech developments will flow from.”
Although most hedge funds know there are huge advances being made in technology which could augment their practice, their job is not to fully understand and implement that technology. “That would take them away from their core business which is investment strategy and client relationships,” Ralph points out, “At RFA, we deliver tech solutions to clients and can share what works as we have tried and tested it all in house, globally. We have been doing this for over 30 years globally and are early adopters of new tech ourselves – Innovation is part of our DNA.”
George Ralph, Global Managing Director & CRO
As Global Managing Director of RFA, George is a technology and business leader with a proven track record of strategic alignment, process improvement and guidance. Having been both a COO and a CTO of his own technology firms over a nineteen-year period, he looks to provide transparent guidance to every business he serves and the people he leads. George has extensive delivery and technical experience in network and server architecture, large-scale migrations utilising leading technology brands, and IaaS offerings.
