The gift of risk management

The Lens is feeling extremely excited – not just because Christmas is around the corner (though trust me, the Lens is unbearable at this time of year), but because a CAMRADATA roundtable is taking place in early December that will focus on investment risk management.

Christmas versus an investment risk management roundtable: it’s hardly comparable, right?! But as risk management has been subjected to an intense focus for asset owners and their third-party managers for a decade, the Lens is keen to understand how asset managers and investors have adapted.

Risk management involves the process of identification, analysis, measurement and the acceptance or mitigation of uncertainty in investment decisions. It’s not unlike opening Christmas presents!

It’s about working out what risks exist in an investment and then dealing with those risks. Done well, investment risk management can reduce or increase risk depending on the goals of investors and their asset managers. 

Risk comprises many areas including liquidity, credit, operations, market risks (such as interest rates), concentration risk and systemic risks.  

Even ESG risk, of course, is topical today. (And there’s always the risk of the chimney being too narrow for Santa to get down).

So much to discuss… so little time – but whatever we discover, the Lens promises to gift wrap and share it.