Risk Budgeting : The Next Step Of The Risk Management Journey
- Topics:
- Commercial Lending
- Tags:
- Budgeting,
- Risk Management,
- Management,
- Investment,
- Financial Services,
- Financial Planning,
- Finance,
- Capital Market Risk Advisors,
- Capital Market,
- Strategy
- Source:
- Capital Market Risk Advisors
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Overview: The article overviews the drivers behind the so called "risk revolution". An improvement in technology is the most significant factor followed by increased fiduciary awareness that has led to the interest and ability to ask more questions by trustees, plan sponsors, supervisors, directors and regulators. In addition, the now-famous surprises have led to the need to update guidelines and definitions and an increased demand for fund transparency. Investors have begun to focus on risk dollars spent to achieve return. The increasing trend to focus on reward and risk at the instrument, manager and overall portfolio level has resulted in a need to ensure that compensation and fees encourage the type of risk-taking that the primary fiduciary desires. All these factors have led to the emergence of Risk Budgeting techniques. Read the article to know the risk budgeting as the next step of the risk management journey.
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Format: PDF | Size: 659KB | Date: Jan 2003 | Pages: 23
