Guest Contributer:Nolan Gesher, Senior Product Manager – Risk & Compliance, Fiserv
The amount of attention the back office gets nowadays might mean it could easily be mistaken for the portfolio manager’s suite or the trader’s desk. Why? The increase in due diligence on back office operations by investors, especially when it comes to reconciliation processes.
Investors’ knowledge of back-office operations has grown dramatically. They are also demanding increased transparency, accuracy and accountability stemming from the financial crisis. Thorough examination of the quality of back-office controls before making investment decisions has become the new norm.
In response, asset managers ranging from hedge funds to mutual fund managers have taken up the call to automate their back office operations. Foremost among these are the reconciliation and account certification processes. It is these very processes that are often studied by potential clients to gauge the breadth and depth of operational controls in place. Success or failure will still be based on the performance of a firm’s investment strategy, but robust operational control now goes a long way in attracting investment capital to begin with.