Despina Savvidou, our Chief Risk Officer, took part, among other industry leaders, in a discussion “Risk management for turbulent times”. It was held during the Finance Magnates London Summit 2022.
The topic of the debate was the issue of risk in turbulent times. The panellists tried to decide which tools are the most effective and how to prepare your business for the opportunities and threats of tomorrow’s market.
The main goal of the round-table discussion was to answer the following questions:
– Which markets events should brokers pay attention to?
– Can brokers pre-empt toxic traders and other hazards?
– Outsource VS in-house risk management: pros and cons.
– Can ‘unbanked’ brokers mitigate crypto exposure risks?
– How do liquidity relationships affect brokers’ bottom line?
You can watch the recording below.
Source: Finance Magnates Youtube Channel
The first topic discussed was the perspective from which retail brokers approach the issue of risk. All the discussants agreed that businesses should consider the long-term view and set long-term goals, including analytical tools development.
“The risk teams sometimes take too short-term of a view. They need to take into consideration all the cycles of the market environment and adapt their risk strategies while the environment is changing”, Despina Savvidou commented.
Later, she discussed companies just starting their operations, spending large amounts of money on marketing, and increasing the cost of acquiring a customer, which, unfortunately, often turns out to be a flawed strategy.
The speakers also discussed the importance of proper due diligence. They agreed that getting to know the clients’ demographics can support brokers in avoiding the toxic flow. Despina brought up the subject of multiple risks that are frequently overlooked. Good internal control was believed to be a must.