Targeted. Tailored. Experienced.
FR Risk Management is an investment consulting service that provides client-focused due diligence, alternative investment product recommendations, educational tools, and quarterly updates. Using our proprietary risk analysis techniques, we prepare investment committee reports and risk disclosure forms to guide asset allocation decisions in the alternative investment industry.
FR Risk Management’s experts help clients identify their risk profile and then suggest alternative investments that align with that profile. We also act as an industry advocate, discussing concerns with sponsors and, when possible, encouraging changes in product terms. We foster longstanding relationships with both sponsors and financial services clients, providing ongoing due diligence support in the ever-changing market and regulatory environment.
FR Risk Management: How It Works
After signing an engagement letter, we meet to review the firm’s risk profile, current practices, and alternative investment platform and point out if any current products appear inconsistent with the firm’s objectives.
After completing the initial review, FR Risk Management performs due diligence on products that meet the firm’s risk profile and may enhance their alternative investment platform.
Once a firm approves a product, FR Risk Management provides ongoing risk disclosures and analysis on the public non-traded programs to satisfy a client’s regulatory compliance obligations and to monitor fluctuations in product risks. To learn more about FR Risk Management’s custom investment consulting services, contact Scott@FactRight.com.
Recent Blogs from FactRight
An Unfortunate Reminder of the Importance of Sponsor Succession Plans
by Kate@FactRight.com (Kate Stephany) on April 19, 2018 at 7:03 pm
Earlier this week, Preferred Apartment Communities, Inc. (PAC), a notable issuer in the alternative securities industry, unexpectedly lost its founder, chief executive officer, and chairman John Williams. Mr. Williams was known to many in the business, although his influence extended far outside the industry. In FactRight’s interactions with him, we found Mr. Williams to be engaging and courteous, consistent with his high reputation. […]
The Masters: A Customer Experience Unlike Any Other
by firstname.lastname@example.org (Scott Smith) on April 10, 2018 at 5:37 pm
Golf fans around the world spent last Sunday afternoon glued to their TVs to watch the best golfers in the world vie for the sacred green jacket. The green jacket is awarded by Augusta National Golf Club each year to winner of its Masters Tournament. On Sunday, hard-charging Jordan Spieth (who nearly tied the course record), the always-stylish Rickie Fowler, and Patrick Reed, who held on to claim his first green jacket, provided the perennial Sunday drama. […]
Can Third Party Evolve Into Your Party?
by email@example.com (Scott Smith) on October 3, 2017 at 5:30 pm
Third party due diligence has evolved into a critical component in the distribution of alternative investments over the past decade. Prior to the Great Recession, third party reports were helpful in the review of products, but the regulatory examiners had yet to require these reports in the every selling firms’ file. The diligence done internally by many of the firms in those days was sufficient to satisfy its obligations to the extent the regulators were enforcing them. Today, good luck finding any regulatory examiner who doesn’t first ask for a third party report when reviewing diligence files. Third party reports are all but mandatory today in any regulatory audit. […]
What Krueger v. Ameriprise Means for Investment Platforms
by firstname.lastname@example.org (Russell Putnam) on September 29, 2017 at 2:12 pm
We’re still talking here at FactRight about Professor Mercer Bullard’s presentation about the DOL Fiduciary Rule at our due diligence conference a couple weeks ago. Professor Bullard thoughtfully explored what provisions of the impartial conduct standards broker dealers ought to pay particular attention to, and over which ones fears are overblown. […]
How to Read a Financial Statement [VIDEO]
by email@example.com (Chari Graham) on September 22, 2017 at 1:21 pm
In this video, FactRight’s Chari Graham takes you through performing a financial statement analysis. […]
The New Corporate Trust Formula
by Stephen Fischer on September 1, 2017 at 6:32 pm
Some time ago, I came across an article from Mark Sheffert of the Manchester Companies in the Twin Cities Business that I read with greater interest: The High Cost of Low Trust. Lab reports and CAT scans Mr. Sheffert’s article begins a cute story that I’d like to repeat here because it illustrates in a humorous way the point of the article. A woman brought her very limp parakeet to her veterinarian. She laid it on the exam table and after a brief exam, the vet shook his head sadly and said, “I’m, so sorry but your Parakeet has died.” […]
What Tibble v. Edison Means for Ongoing Due Diligence
by firstname.lastname@example.org (Russell Putnam) on August 30, 2017 at 2:32 pm
A recent federal court decision has critical implications for broker dealers and others who are wrestling with what new fiduciary status may mean for platform design and ongoing monitoring of retirement investment options. […]
Cybersecurity for Financial Services Firms
by Kate@FactRight.com (Kate Stephany) on August 25, 2017 at 9:00 am
Cyber security has been a focus of FINRA for a few years now, usually on the technical side. But what about the business concerns? About a quarter of cyberattacks are enabled by inadvertent actors: employees who mean well but click on a malicious link or use an outside email to send a file that is too large for the corporate security protocols. Approximately 31.5% of attacks are from malicious insiders, such as employees sent to a company for espionage, or disgruntled employees. Most attacks, 45%, originate from an outside threat, like competitors, foreign intelligence services, or hacktivists. […]
Four Steps Financial Planners Can Take to Use Alternative Investments Confidently and Prudently
by Mario Nardone on August 17, 2017 at 9:01 am
Financial planners tend to enjoy (or at least prefer) spending time with their clients, helping detangle and re-organize many facets of their finances, and encouraging them to live enriched and fulfilling lives, to borrow oft-cited adjectives from their corporate missions. Running a holistic practice and maintaining expertise on a broad swath of topics from insurance to taxes can leave little room on their calendars for investment due diligence, yet many advisors lose sleep over whether or not they are fulfilling their fiduciary duty in this aspect of their practice. […]
What are the Costs of a Low Integrity Environment?
by Kristy Grant-Hart on August 10, 2017 at 6:49 pm
Fines. Loss of share value. Firings. Public shame.&nbs […]