"If you can't measure it, you can't manage it" takes on a new meaning in the face of the COVID-19 pandemic. The systemic declines affecting assets across all categories are abundantly clear. What's less obvious is where to find the points of friction within a company's operating model, which drive the narrative that explains how declines in economic activity will translate to lower future earnings. Identifying those points of friction, or inflection points, necessitates having a firm grasp around what makes a company tick. At a high level, we can generalize those activities by answering three fundamental questions to help frame a company's operating model:

Intense competition, market volatility, sophisticated clients, and a demanding regulatory environment continue to raise the stakes in investment risk management. For asset managers, fees and budgets are shrinking. For asset owners—including pension funds, insurance companies, and endowments—and asset managers alike, alpha is becoming more elusive, leading to a rise in passive investing and nontraditional asset classes.