"As alternatives tend to carry some combination of illiquidity and alpha risk
, advisors will need to reflect that to clients and ensure they receive adequate analysis and understanding," the paper suggests.
Cardiff-based Alpha Risk
Management, which has been formed by a group of former special forces soldiers, said the number of occasions when it had been called in to "sweep" offices and carry out similar counter-surveillance measures had risen dramatically in recent months.
The two-year study, conducted by Alpha Risk
Services, Inc., and released by LeasingDesk Insurance, analyzed 1,000 apartment fire insurance claims.
Herbert Feldman, president and CEO of Alpha Risk
Management, Inc., discussed minimizing insurance losses through adequate coverage and how to enhance insurance recoveries after property damage events.
Specifically, alpha risk
is the likelihood that an auditor will conclude that an account is materially misstated (in error) when it is not and beta risk is the likelihood that an auditor will conclude an account is not materially misstated when it is indeed materially misstated (in error).
Franco is president of Alpha Risk
Services, Inc., Atlanta, an insurance placement and risk management consulting firm specializing in the multifamily industry.