Non-Investment Risk Analysis and Ratings

Convergence’s data and proprietary analytics are conditioned to identify and measure four types of non-investment risk in all asset managers in the market.

Operational Risk

Answers the Question…

What Operational Risks exists in my Manager’s business and how is it changing and managed?

We provide “insights” into this risk by identifying, measuring and evaluating changes to 22 “Operational Risk Factors” in your Manager’s business. Each change impacts operational risk and needs to be managed. Higher risk requires additional controls.

Compliance Risk

Answers the Question…

How well does my Manager’s Compliance Program meet regulatory filing requirements?

We provide “insights” into this question by identifying measuring and evaluating changes to 15 “Compliance Risk Factors” in your Manager’s business, including an assessment of the quality of your Manager’s Form ADV filing. Higher risk requires additional controls.

Event Risk

Answers the Question…

How susceptible is my Manager to the type of wrongdoing cited in SEC enforcement actions?

We provide “insights” into this question by identifying and comparing the “High Risk Business Conditions” that “set-the-table” for the wrongdoing to your Managers . We analyze each action and create an “Event Risk Match Rate” for your Manager.

Service Provider Risk

Answers the Question…

How much risk is my Manager taking with service providers they have selected to support funds?

We provide “insights” into this question by identifying and measuring 14 “High Risk Service Providers” using cutting edge approaches. We substantiate the service providers that Advisers hire to support their private funds and you, the Investor pay the fees for.

Benefits of Non-Investment Risk Management

Institutional Investors, FOF and OCIO Providers

Pre-Investment Benefits

  • Permits an initial view of non-investment risk in potential investee Managers
  • Online and efficient non-investment risk analysis

Post-Investment Benefits

  • Moves your ODD from periodic to dynamic and “event driven”
  • Customize risk alerts and insights that the user finds important

Analysis and Reporting

  • Allows users to generate comparative statistics within and across their portfolio and the market
  • Provides multi-year time series views and trending

Affordable

  • $1,000 per year per Manager tracked on the platform
  • Scales with volume of Managers added to the platform