Developing a robust CRM Analytics strategy for Hedge Fund institutions to improve investment diversification

Abstract

Abstract: In this paper, we explore how the international financial community can build a sustainable and adaptive financial sector that supports stable and efficient institutions of finance in both accelerating and declining global markets. The analysis, viewed from the side of public policy makers and private decisionmakers. We discuss systemic under provision of innovation driven by both homogenous competition in the financial industry and asymmetric requirement for heterogeneous innovations leading to two main problems: stagnant growth due to a lack of economic breakthrough, and unstable exposures caused by concentrated lowprobability highseverity risk events borne within opaque institutions. It describes the features of a properly created financial system, and it serves as a bullseye for those who build structures and institutions for the financial architecture. In order to address inherent risks and attain this ideal, the paper presents best practices that include a changemanagement framework allowing dynamic adaption to current market conditions. The paper suggests an enterprise risk management framework to enable sound financial service institutions. It is designed to reinforce value creation, curb opportunistic behavior, constantly manage riskreturn optimization and promote sustained improvement in the performance of institutions. The paper ends with policyrelevant reflections and words of caution around enacting the suggested framework for aligning dynamic outcomes between industry and investors, as well as enhancing institutional riskadjusted value.