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risk management


Weekend Reads for Investors: On the Road Edition
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Risk intelligence, the importance of meditation for investment pros, and dynamical dark energy are just some of the topics covered in this week's Weekend Reads for Investors, curated by Jason Voss, CFA.

When Does Volatility Equal Risk?
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The right question isn't whether volatility equals risk, says Gary Mishuris, CFA. Rather, the right question to ask is: When does volatility equal risk?

Book Review: Economics for Independent Thinkers
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Economics for Independent Thinkers is useful to practitioners who make economic forecasts. Investment strategist Daniel Nevins, CFA, recounts becoming a skeptic about the application of quantitative methods to economics and about standard prediction methods, such as the lagging nature of consumer confidence surveys. He especially disdains economists who strive to make reality fit their models.

Avoid Unintended Bets in Your Investment Portfolio
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Northern Trust CIO Robert P. Browne, CFA, discussed how asset allocation decisions are made using quantitative methods, while the underlying (active) portfolios are often run by managers from the fundamental school of investing, at the 70th CFA Institute Annual Conference.

Purposeful Capitalism and Risk Management: Lutfey Siddiqi, CFA
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“Purposeful Capitalism” describes an evolution of capitalism wherein the investment industry becomes more professional, ethical, and client-centric. Lutfey Siddiqi, CFA, discusses this scenario in an interview with Robert Stammers, CFA.

Fintech’s Artificial Intelligence Revolution: The Missing Link
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We stand at the threshold of an era of pervasive artificial intelligence (AI) in financial services. While it’s tempting to say, “Again?” — this time really is different. Why? Because AI/machine intelligence will be rapidly deployed across financial institutions. And though this evolution is inevitable, we need to be mindful about the ethics of the undertaking. As an industry, we must work together to ensure careful and thoughtful AI integration.

Frances Barney, CFA, on Tackling Enterprise Investment Risk Management
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Enterprise risk management goes beyond taking information from investment managers at face value, but it’s a better way to get a picture of the investment risks involved.

Sir Paul Tucker: Systemic Risk and Threats to Financial Capitalism
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Sir Paul Tucker is not shy about making an audience feel uncomfortable, Mark Harrison, CFA, observes. In fact, the crowd was rather ill at ease during Tucker's presentation at the 70th CFA Institute Annual Conference, and not just because the topic was systemic risk.

Book Review: Enterprise Risk Management in Finance
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Providing a general overview of salient topics in risk management, this book is best suited to the experienced risk manager, who can turn to it for technical guidance and a good, succinct refresher on select topics. The beginner would do well to stick with the book’s qualitative discussions, which can serve as useful points of departure for further study.

Book Review: Even the Odds
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A leading analyst and portfolio manager shares her approach to sensible risk taking, which can be applied to anticipating, evaluating, and responding to risks in business, investing, and everyday life.