Building a Risk Platform for the Modern Markets
A Conversation with Chief Risk Officer, Nilimp Bhatt
The past 12 months have been a referendum on risk management in prime brokerage, and markets today continue to feel the effects of the past two years’ volatility. And yet, we only seem to talk about risk strategies and practices after some type of problem has occurred: a major blow-up, a firm failure, an insanely high margin call. And those discussions tend to be finger-pointing (who was asleep at the wheel?) or forensic (what went wrong?). We look for bad data that led to a major collapse or laissez faire management that let something slip through the cracks. Once we’ve found something or someone to blame, we go back to our daily business with little reflection on our own risk management practices.
Wouldn’t it be more useful to talk about risk before the problems arise? During a recent moment of relative calm, I spoke with Clear Street’s Chief Risk Officer, Nilimp Bhatt, about how his team thinks about and manages risk — in the good times and the bad. In the following Q&A, Nilimp and I discuss recent hard-won lessons, the evolution of risk management, and what we mean by “best-in-class” risk management at Clear Street.
Keep reading on our blog:
www.clearstreet.io/insights/building-a-risk-platform-for-the-modern-markets
