LESSONS FROM THE CRISIS:

In the first of a series of live webinars hosted by the Financial Times in partnership with State Street, this virtual event will gather investment leaders to discuss the operational impact of the pandemic to date, and the lessons learned to weather the storm and plan for the move from volatility to value.

The business of investing has been hit hard by COVID-19. Not only has the pandemic severely rocked markets, prompting a potential recession, it has also presented asset owners and asset managers with unprecedented challenges in managing risk, liquidity and operational resiliency.  Against this background, and facing into an equally uncertain outlook, how are institutional investors reacting and what should be their next steps to ensure they are prepared for the road ahead?  

As investors’ business continuity plans continue to be tested at a time of extreme pressure, what is working and what isn’t?   What measures are being, and can be, taken to address the key pain points, from operational disruption to funding needs, in a rapidly evolving environment?  How important is collaboration with partners and service providers to ensure the correct protocols and processes are in place to allow for quick and efficient action when needed?

• The crisis has been an unprecedented stress test for business continuity. Relationships with suppliers and partners in investment operations are now under more scrutiny than ever as institutions ask if, like Goldilocks, they have too many, too few or just enough partners for the new way of working.

• Cyber security is now a huge concern as more and more systems and processes move to remote sites and to the cloud. Phishing attempts have become more sophisticated and investment institutions are doubling down on their efforts to manage the risks of having hundreds and possibly thousands of satellite and home offices.

• 90% of an organisation’s assets are its employees, and work life has changed beyond all recognition.  To ensure creativity is maintained and to be a better place to work, asset managers and asset owners will have to decentralise their decision making, empower their workforce and build more flexibility into their way of working.

• Environmental, social and governance factors have shot up the agenda since the crisis began.  Responsible investing is fast moving from an idea to a belief, and as it becomes normalised it will likely define the winners and losers of tomorrow.

© Financial Times Live

FT Live and its journalism are subject to a self-regulation regime under the FT Editorial Code of Practice