Monitoring is your IT compass to navigate the storm
Using real-time monitoring to reduce downtime can help hedge funds navigate through a stormy macroeconomic environment.
The energy crisis, geo-political uncertainty, falling consumer confidence and rising inflation mean that profits across the board are shrinking. Opportunities to generate returns are becoming increasingly few and far between for financial services firms such as hedge funds. Renowned for their bullish, risk-taking mentality, hedge funds have to be prepared to strike at a moment’s notice to maximize each and every opportunity.
But what happens when that optimal moment arises, and your technology fails? A few seconds of downtime can be fatal for profits, with millions of dollars lost. Or you can miss opportunities when you can’t execute a great deal at the right time because of a system failure.
Reduce IT outages
Technology adoption has long been part of hedge funds’ aggressive approach to business, but many cannot yet ensure that their end-to-end operations are robust enough to prevent systems outages.
How do you guarantee your systems are performing at an optimal level to give the best possible chance of generating returns? To truly mitigate risks, you need full observability of your trading IT infrastructure at all times. Monitoring tells you if your systems are working, while observability helps you find out why they are not working. It’s about unknown-unknowns rather than known-unknowns.
Achieving real-time observability of all your relevant structured and unstructured data in real-time is vital. Why? You can dramatically reduce mean time to resolution (MTTR) – the time it takes to resolve faults. Additionally, with early notification of potential issues you can spot and correct them before they escalate. After all, incidents that impact systems impact revenue. Plus, using technology to ensure better management of capacity levels, your IT infrastructures will be more efficient and therefore more sustainable.
Hedge fund technology is often bespoke, so monitoring these complex and interconnected IT estates requires a platform that is adaptable and customizable, allowing you to write your own scripts to monitor your critical infrastructure at scale.
Operational efficiency
The knock-on effect of IT and system outages goes beyond the immediate inability to trade and exploit market opportunities – investor confidence is at risk as well. Investors trust the growth of their capital not only to your fund’s strategy, but to the underlying operational infrastructure that supports the models.
Informed investors perform due diligence on your firm’s entire operations; and IT performance is of significant and growing importance to today’s investors. It’s essential that you have the solutions in place to ensure they are “always-on,” no matter what is happening.
In a world where the macroeconomic storm has little chance of abating anytime soon, it is essential that you take control of the controllables to give your firm the best possible opportunity to thrive.
And, while technology can’t answer every problem, by having the right systems in place means that when that moment does come you can navigate straight toward it - and ensure your bottom line stays on track.
You can read the original article in Traders Magazine.
Learn more about the ITRS real-time, end-to-end monitoring platform by clicking below.
