Alternative Investment

HEHFP Module 5: Portfolio Risk Management


This is Module 5 of the Henley Executive Hedge Fund Program (HEHFP). It picks up the themes in Module 4 on risk management in the investment process and discusses the role of the independent portfolio risk manager. This module also covers the functions of identifying, measuring and monitoring risks, and the mechanisms and best practices used to control those risks in practice.

This module is a 3-hour (approx. study time) course and is eligible for 2 SFC CPT/PWMA OPT hours.

Check out the other modules in the Program:


By the end of this module, you will be able to:
- Describe what is risk management in hedge funds
- Tell the role of the independent portfolio risk manager
- Recognise the functions of identifying, measuring and monitoring risks
- State the best practices used to manage the risks


Part 1 - Pre-reading materials
(i) Useful Definition
(ii) An Introduction to Value at Risk

Part 2 - Presentation Slides of the eCourse

Part 3 - Portfolio Risk Management eCourse*
(i) Introduction
(ii) Section 1: Overview of Portfolio Risk Management at Hedge Funds
(iii) Section 2: Identifying, Measuring & Monitoring Risks
(iv) Section 3: Risk Limits
(v) Section 4: Enforcement
(vi) Section 5: Adding Value
(vii) Section 6: Conclusion

Part 4 - Quiz*
The quiz consists of 15 questions where learners have 3 attempts to achieve at least 80% with correct answers as a pass.

Part 5 - Post-reading materials
(i) Guide to Hedge Fund Risk Management
(ii) Risk Management for Hedge Funds
(iii) SBAI
(iv) Basis Risk
(v) Hedge Fund Risk Fundamentals
(vi) Black Monday: Simulation of a Trend-Following System

* mandatory parts to complete

Who should attend

(1) Hedge Fund professionals seeking to enhance their knowledge
(2) Individuals looking to start a Hedge Fund
(3) Service providers e.g., Banking, Risk, Compliance and IT professionals, Lawyers, Fund Administrators


Relevant Subject
Type 9 - Asset management
SFC:2.00, PWMA:2.00
All Member: HK$775
Staff of Corporate Member: HK$775
Non-Member: HK$1550
Chinese Securities Association of Hong Kong (HKCSA): HK$1085