Luc Neuberg (ALRiM): From compliance to strategy

Luc Neuberg, Chairman of the ALRiM board, explains why risk management has become a strategic priority for the investment fund industry and outlines how Luxembourg can strengthen its position as a global centre for risk expertise, training and forward-looking financial resilience.

Why is risk management becoming a strategic priority for the investment fund industry?

Risk management is becoming a strategic priority for the investment fund industry as the sector grows in size, complexity and systemic relevance. According to initiatives led by GFR (Global Fund Risk) and ALRiM (Luxembourg Association for Risk Management), investment funds now play a central role in financial intermediation, increasing the need for robust and forward-looking risk frameworks.

The risk landscape is evolving rapidly. Beyond traditional market and credit risks, managers must address liquidity pressures, operational vulnerabilities, sustainability risks, model risk and ICT-related threats, requiring a more integrated and holistic approach.

Recent tensions in private credit markets illustrate these challenges. Large asset managers such as BlackRock and Blackstone have faced strong redemption requests in private credit vehicles, forcing some funds to limit withdrawals due to the illiquid nature of underlying loans.

At the same time, growing geopolitical tensions and global economic fragmentation are adding significant uncertainty to financial markets, increasing volatility and reinforcing the need for stronger risk management across the investment fund ecosystem.

“Risk management is becoming a strategic priority”

How can Luxembourg position itself as a global hub for risk management training and expertise?

Luxembourg can position itself as a global hub for risk management training by leveraging the expertise and credibility of its financial centre. Through initiatives led by ALRiM and GFR, the country is developing specialised programmes tailored to the needs of the investment fund industry.

The launch of the Risk Academy represents an important step in this strategy. The initiative offers a wide range of specialised courses covering key topics such as market risk, liquidity risk, credit and counterparty risk, operational risk, sustainability risk and ICT risk in investment funds. These courses are designed to provide practitioners with practical and up-to-date knowledge aligned with the evolving regulatory and market environment. They also prepare candidates for the GFR certification, a qualification specifically focused on risk management in the fund industry.

By combining professional training with the expertise of Luxembourg’s financial ecosystem, the country can strengthen its international reputation and establish itself as a centre of excellence in risk management education.

What new skills do risk managers need in an era of emerging risks such as AI, liquidity shocks and geopolitical risk?

Risk managers must develop a broader and more interdisciplinary skill set to respond to the rapidly evolving risk environment. The profession is moving beyond a purely technical role toward a more strategic function capable of anticipating complex and interconnected threats.

One key area is technology and artificial intelligence. As financial institutions increasingly rely on AI tools, data analytics and quantitative models to guide investment decisions, risk managers must understand how these systems operate and be able to identify potential vulnerabilities. Managing model risk, algorithmic bias and risks linked to digital infrastructures has become an essential capability.

Another critical skill concerns geopolitical risk analysis. Rising geopolitical tensions, trade fragmentation and political instability are creating new sources of market volatility and uncertainty that can directly affect investment strategies, liquidity conditions and capital flows.

In this environment, risk managers must develop a holistic and transversal perspective, allowing them to connect different categories of risks and anticipate how shocks can spread across financial markets and institutions.