We usually tend to think of risk in predominantly negative terms. However, in the investment world, risk is necessary and inseparable from performance. A common definition of investment risk is a deviation from an expected outcome. That deviation can be positive or negative, and it relates to the idea of “no pain no gain” (to achieve higher returns, in the long run, you have to accept more short-term risk, in the shape of volatility). Faced with different regulatory obligations, management companies need to meet risk measurement and reporting requirements in a streamlined process and at an acceptable cost.