Corporate governance is pivotal to our success
Corporate Governance Team
DHF Capital S.A. incorporates best practice of corporate governance that is why we use 2-level management system to monitor senior managers. Furthermore, we implement 4 line defence model in compliance with strict internal rules and procedures that we supervise at all times.
Members of the Trade Management Services OU are selected based on the high level of expertise they bring to the investment decision making process.
The investment committee creates strict investment criteria for traders and has a final say on all investment and trading strategies.
Risk management is the core of DHF Capital. Every facet of our business model involves identifying, managing, leveraging, or minimizing risk. Our risk managers are specialists at identifying, measuring and mitgating risk. We take the stewardship of our client’s capital extremely seriously, which is why our risk managers oversee multiple layers of risk budgeting and capital if risk budgeting and capital allocation protocols.
Risk Management is our Philosophy
KEYS TO EFFECTIVE RISK MANAGEMENT
Effective risk governance demands that the trading function is separated from the risk management function. We have key individuals who are independent of the trading function and who monitors the positions taken by the traders and price them independently. The risk manager has the responsibility to monitor risk levels for all portfolio positions (as well as for portfolios as a whole) and to execute any strategies necessary to control the level of risk.
Our trading desks provide the risk management team with timely and accurate information, authority, and independence from the trading function. Additionally, our traders have their own risk management expertise in order to allocate capital in an optimal fashion and maximize risk-adjusted profit. Our risk manager works with the trading desks in the development of risk management specifications, such that everyone in the organization is working from a common point of reference in terms of measuring and controlling exposures.
Risk budgeting involves establishing objectives for traders that take into account the allocation of an acceptable level of risk. As an example, our foreign exchange (FX) trading desks are allocated certain levels of capital and permitted a specified daily Value at Risk (VaR). In other words, each trader is granted a budget, expressed in terms of allocated capital and an acceptable level of risk, expressed in dollar amounts of VaR. The important takeaway is that we allocate risk capital before the fact in order to provide guidance on the acceptable amount of risky activities that a given unit can undertake.
In order to maximize risk-adjusted return through the capital allocation process, we must measure performance against risks assumed and budgeted at both the firm level, sub-strategy level, overall portfolio level. All trading activities are evaluated against the risk taken, investment performance is measured from a risk-adjusted perspective.