Risk Management & Risk Services

The risk management team has two primary functions; the first function, Risk Management of Prime Brokerage, which includes the setting of policy for Margin Financing, facilitates stable and prudent leverage to portfolios composed of liquid, diversified long/short securities.

The secondary function, Risk Services, is to provide comprehensive risk reporting, risk tools and risk advisory services to hedge fund clients.

Risk Services

Through a dedicated risk web site, "RiskAnalytics", Morgan Stanley provides comprehensive risk reporting incorporating, "Value At Risk" calculations based on Monte Carlo simulations, exposure and liquidity reporting including both delta and beta adjusted calculations, historical scenario analysis and stress tests.

As a customisable web based risk tool, it allows for the display of all present as well as historical risk and exposure calculations, facilitating the identification of trends by graphically representing risk exposures over time. Further analysis of the displayed data can be performed by downloading to Excel. Moreover, clients can upload their own sector classifications to the web-site, to further customise their risk reporting. This dedicated client risk management web-site, can be accessed via Morgan Stanley's overall client internet portal "ClientLINK".