Risk governance for alternative investments

In recent years, various insti­tu­tio­nal inves­tors, inclu­ding pension funds, provi­dent funds and other pension sche­mes, have recor­ded signi­fi­cant value adjus­t­ments, write-downs and losses in connec­tion with alter­na­tive invest­ments. — How can such losses arise for insti­tu­tio­nal inves­tors? In addi­tion to the quan­ti­ta­tive manage­ment of market, credit, liqui­dity and capi­tal requi­re­ment risks, what signi­fi­cance do the under­ly­ing proces­ses, controls and gover­nance struc­tures have in the manage­ment of alter­na­tive invest­ments? — Three ques­ti­ons for Benja­min Jung­bluth, Part­ner at BDO Finan­cial Service Wealth & Asset Manage­ment in Frank­furt am Main.