Given that we know what kinds of portfolio risks to be aware of and a way to quantify them here, we will proceed to the final piece of the risk management process, namely how to manage or mitigate some of these risks. It is important to appreciate that once a portfolio is created, risk can […]
Category: Risk management
How To Measure And Quantify Risk?
Now that we have looked at various kinds of risk here and here, the question arises as to how we can measure or quantify some of them so as to enable us to monitor and manage these risks. There is, however, one key concept that we would like to address before we get there – […]
Lesser-Known Portfolio Risks
We looked at some well-known portfolio risks in our previous note Portfolio Risk, we shall now look at a few of the lesser-known risks and explore what kind of products or securities they might lie in. Correlation risk: When portfolios are created by investors or investment managers, there is generally an inherent assumption made towards […]
Ask any investment manager about their key focus areas while managing portfolios and you’re likely to hear risk management as one of the top 3. There are risks in doing pretty much most things in real life and the same applies to the financial world as well. There are risks in keeping money in a […]