Buy Side Struggles to Integrate Analytics

Linking performance attribution and risk has clear benefits, but fragmented approaches are making it hard for firms to unify processes and underlying data. Clive Davidson outlines the key challenges, and how firms are addressing them.

More recently, a combination of factors—including the need for greater consistency across functions, investor demand for more transparency and pressure on IT costs—has driven the industry towards deeper and wider integration. But while there are clear benefits, there are also some fundamental differences across the functions that constrain how far the process might go.

One driving factor for greater integration of performance and risk is “more sophisticated clients and investors who are more aw