Hedge fund managers and investment advisors are now subject to numerous regulations and oversight since the Dodd–Frank Wall Street Reform and Consumer Protection Act was signed into law on July 21, 2010. Under the Private Fund Investment Advisers Registration Act of 2010 hedge fund and other investment firms are now required to register with the SEC and comply with numerous rules, one of which focuses exclusively on business continuity and disaster recovery preparedness.
Having to comply with new rules and regulations can be burdensome and time-consuming, especially when the requirements are outside an organization’s traditional focus. Avalution, however, can efficiently alleviate this burden for hedge funds who must now adopt a formal, long-term approach to business continuity planning through a outsourcing arrangement.
Bottom-line, allowing Avalution to participate in your planning effort will contribute to taking the guesswork out of these new requirements – delivering results and compliance in the near-term while maximizing value and return on investment in the long-term.
Return on Investment through Outsourcing
Outsourcing your business continuity efforts is a cost-effective, viable option for many reasons, but the three main reasons hedge fund managers are reaching out to our team is because:
- They've just been required to register with the SEC and demonstrate preparedness capabilities, but they don't have the time or experience needed to properly develop and implement a quality business continuity program;
- They haven't been able to hire anyone because they can't find the right people and it's too expensive to have someone find the right people for them; or
- Their resource needs are inconsistent over a calendar year; therefore, hiring full time personnel doesn't make sense.
By leveraging industry best practices, international standards and a management systems approach to business continuity, Avalution Consulting can holistically help define business continuity and disaster recovery needs and create a plan that not only meets regulatory requirements, but also addresses crisis management, business continuity and disaster recovery needs. In addition to achieving compliance with SEC requirements, the result is a robust yet straightforward plan for mitigating risk, managing a business disruption and maximizing value.
Additional Resources
Is Business Continuity Co-Sourcing the Right Solution for My Organization?
Business Continuity: Now Required at Most Hedge Funds