Alpha Governance Partners, the only jurisdiction-agnostic, conflict of interest-free, high-value-add partnership provides professional fiduciaries to any financial and fintech entity. Clients include banks, wealth managers, asset managers, investment funds, fund management companies, charities, family office vehicles, supra-nationals, pension funds and fintech incl. blockchain. Aiming to support investment governance quality, our focus is risk governance
Cadman & Maraseni, 2014, in: Cambridge Handbook of Institutional Investment and Fiduciary Duty
This means that as directors we strive for appropriate robustness of both:
- investment risk management focused on market-, credit- and counterparty-, liquidity-, and operational risks.
- managerial risk management, such as technology- (incl. cyber-), conduct-, outsourcing-, legal-, and reputational risk, which all loom all around the investment setup.
We call this extended enterprise risk management, and, in our mind, risk is always idiosyncratic. In the face of complexity and done well, this is a highly-demanding job.
Cullen and Brennan, 2014, Reconceptualising Investments Fund Board Effectiveness: Role of Fund Promoter Organisations, Working Paper
As directors, we tailor our role to client’s wishes:
Besides offering the professional AGP-partner network, one of the main functions of our directors is managing conflicts of interest, which are often baked into the investment setup. These become especially apparent in times of stress where reputation and financial results can come under pressure.
By fulfilling our fiduciary roles as directors, we protect investors, investment managers and investments, we want our clients to be successful (and they normally are!). Outcomes of our work include:
- Improved governance and board dynamics
- Aligned strategy and risks
- Increased independence and confidence
- Higher standard of (regulatory) compliance
- Mitigated investment and operational risks
- Protection of assets and investment results
- Building resilience, shielding from litigation
- Added credibility, enabling capital protection
Our risk governance approach
At AGP we are convinced that good quality governance consists of personal excellence, and a well-structured approach which gets implemented. Governance is action!
1. A sound fiduciary decision
A director is required to pass excellent judgment. A fiduciary decision is sound when it captures moral and technical considerations in a reflective manner.
2. The risk governance process
As stakeholders’ interests and risks change, risk governance is a process that adapts continuously to ensure that fiduciary responsibilities are being met.
3. The risk governance implementation
Risk governance is not abstract but very to-the-point and needs implementation where the investment rubber meets the road.
Here we present two case studies and how AGP-directors were of service. Of course, we have many examples, all situations are bespoke.