“A firm that cannot properly value its assets cannot effectively manage its risk,” says Dr. Cindy Ma in “A Tale of a Two-Sided Coin”—published in the June edition of Risk Professional. While this notion may seem fundamental, many financial institutions and asset managers continue to view valuation and risk management as two separate disciplines.

Dr. Ma explores the relationship between valuation and risk management, lessons learned from the recent financial crisis, and emerging valuation best practices for effectively managing risk, in this must-read for risk management professionals, asset managers, valuation practitioners and investors.

The article also includes a detailed explanation of the benefits a third-party valuation opinion of illiquid assets can provide with respect to managing and mitigating risk, avoiding conflicts and meeting investor demands for greater transparency. In addition, Dr. Ma explores the differences between three common forms of third-party valuation opinions and their potential impact on asset managers and investors.

To download “A Tale of a Two-Sided Coin” click here

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