Page 89

I N T E R N AT I O N A L GAMECHANGER OF THE YEAR (ODD), CHRISTOPHER J. ADDY, CASTLE HALL ALTERNATIVES OPERATIONAL DUE DILIGENCE FIRM OF THE YEAR, CASTLE HALL ALTERNATIVES

The Due Diligence Challenge Institutional allocators and fiduciaries are currently faced with a number of competing objectives and realities as they fulfill their responsibilities to their constituents and beneficiaries. 1. Increasing focus on Governance, Risk and Compliance best practice. • Best practices dictate implementation of a consistent Operational Due Diligence Policy which is risk-based, covers all asset classes and third-party manager relationships across the portfolio, and incorporates monitoring of the evolving operational risk environment at each manager.

Esther Zurba Director

The Due Diligence 3.0 framework rests upon four pillars: • Multi asset class. Due diligence should be applied across all third-party asset manager relationships, not just hedge funds. Fiduciaries now recognize that non investment risks associated with third party asset managers – accounting error, misvaluation, fraud, conflicts of interest – can also occur in private equity, real estate, infrastructure and long only managers.

2. Investment objectives and search for yield or performance in a lower-yield and evolving risk environment.

• Real time monitoring, not just snapshot reports. Traditional ODD was focused on the “report”, prepared on a static, point-in-time basis. Looking forward, investors recognize that monitoring the evolving risks across the portfolio is the foundation of an effective operational risk management program.

• Investment return objectives often lead to the inclusion of complex asset classes, and emerging managers which are subject to increased operational risk.

• Risk-based approach. Diligence procedures should be calibrated to reflect different risk profiles across asset classes and manager / fund allocations.

3. Fiscal responsibility and constraints.

• Fintech. The days of spreadsheets are over. Investors and their service partners should aggressively leverage technology to process ever increasing amounts of information and deliver more effective and efficient risk identification, reporting and monitoring.

• It can be challenging to balance increasing GRC requirements, evaluation and monitoring of more complex investments, and human resource capacity and budget. •Allocators must consider whether to ‘insource’, ‘outsource’ or ‘co-source’. Due Diligence 3.0

Daryl Purdy Vice President

Operational Due Diligence (“ODD”) has changed.

T) T) E) E)

Castle Hall identified “Due Diligence 3.0” as a new operating model in 2014. Since then, this framework has guided the development of our firm, particularly with respect to the implementation of our DueDiligenceProfessional™ online diligence risk tool.

+1-450-465-8880 x 224 +1-450-465-8880 x 236 ezurba@castlehallalternatives.com dpurdy@castlehallalternatives.com

We have also introduced key service offerings such as OpsMonitor, first launched in April 2015.

Due Diligence 3.0 is codified within a Due Diligence Policy. An effective diligence policy – like a valuation policy or compliance manual – considers scope, methodology, authority, reporting lines and process, both at a point in time and over time. A Due Diligence Policy will establish the level of due diligence to be undertaken at each stage of the investment process - screen, onboard and monitor - considering the inherent risk of the asset class and fund structure; the manager specific risk; and the materiality of the investment. Due Diligence. Solved.

I N T E R N AT I O N A L NETWORK SECURITY SOLUTION PROVIDER OF THE YEAR, _CYEL GAMECHANGER OF THE YEAR, JAUME AYERBE, _CYEL

INTERNATIONAL - NETWORK SECURITY SOLUTION PROVIDER OF THE YEAR, _CYEL _cyel ag, a Swiss company, is world’s first to deliver moving target network security. Their solution, _equilibrium, is retrofit compatible. CEO Jaume Ayerbe tells us more about the firm and its recent success. Cybersecurity today is essentially a game of cat and mouse: the attackers are always a step ahead of the defenders. _cyel was formed to rebalance this asymmetric competition. The firm’s awarded network security solution, _equilibrium, delivers on that promise. Despite being pretty young as a company, _cyel comes with an experienced team in all critical functions; plus, its extended organisation reaches out to all the key geographies. Jaume explains what is affecting the industry at the moment and how the company works hard to solve these difficulties. “The rapid rise of the internet in recent decades has changed the requirements regarding security and data protection. Up to now, the solution has always been to plug the gaps and repel attackers. _cyel is fundamentally changing the standards.” cyel ag Jaume Ayerbe Gurtenbrauerei 10, 3084 Wabern, Switzerland Email: info@cyel.ch Phone: 0041 31 552 12 22 Website: cyel.ch Twitter: @_cyel_security

Concerning openness on the internet, Jaume discusses how the internet has developed and evolved since it was invented, leading to a higher prevalence of cyber criminals. “When the Internet was invented, data protection and confidentiality were not part of the basic standard. It was precisely this simplicity and openness that made it successful. Consequently, ever more and increasingly valuable content is

being transmitted. That attracts criminals and spies; the attacks are becoming ever more professional and cause substantial losses. “Today, numerous measures are used to protect the content, from the next-generation firewalls to intelligent attack detection and more. Nevertheless, the target remains vulnerable because it continues to be identifiable as such. That is why we are changing the paradigm from defence to flexibility, moving target security. That means: we are removing the areas of vulnerability. Potential targets are moved, distributed and hidden.” Explaining the simple, independent solution provided by _cyel, Jaume clarifies that clients do not have to change their product to implement this solution. “Here at _cyel, the solution is placed in front of your existing infrastructure; you do not have to replace anything. It is easy to operate and changes the work of the security officers – from fighting disparate technologies, to have a firm handle on business risks. Security becomes predictable.” “We would be happy to jump into a call and see how we can help you; we are doing so for Government organisations, financial institutions, logistics companies, services providers, retailers, hospitality and more.” Looking ahead and predicting the future of the firm, Jaume details the company’s goal, how it aims to establish itself as the leader in the market.

ACQ GLOBAL AWARDS 2017  

ACQ5 is proud to announce to the world the winners of the ACQ5 Global Awards 2017. The 2017 ACQ5 Global Award winners represent the best o...

ACQ GLOBAL AWARDS 2017  

ACQ5 is proud to announce to the world the winners of the ACQ5 Global Awards 2017. The 2017 ACQ5 Global Award winners represent the best o...