A more realistic look at risk
The University of California’s Rick Bookstaber argues that risk management should move from static equations to more realistic models in which outcomes depend on multiple agents.
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Risk management’s next level
UC Regents’ Risk Management 3.0 aims to be a better predictor of financial crises, by going beyond historical trends and stress testing, to look at how people and systems behave under pressure.
Board make-up matters
The more political appointees and worker representatives sit on US pension fund boards, the more those funds will respond to incentives that encourage riskier investing, research has found.
We need to be better than ‘optimal’
An over-reliance on mean-variance optimisation has led to portfolios that fail to take into account the radical complexity of the real world and embrace ‘pretentious and unhelpful symbols’.
Ignorance isn’t bliss
In an increasingly complex and inter-connected world, a broader perspective on risk is essential in helping investors navigate an uncertain future, writes Phil Edwards.
Opportunity in the making
It is more than ever a “market of credits” rather than a “credit market”, according to Mercer, affording those with rigorous research coupled with patience, capital and flexibility the potential
FIS MIT 2017