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risk


How to Best Gauge Your Risk Tolerance
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How often do you check your investment performance? The answer goes a long way in determining your risk tolerance.

Integrating Water Risk Analysis into Portfolio Management
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Water risks can lead to unlimited financial impact and loss. Have you embedded water risk analysis into your portfolio management process? There are a number of increasingly sophisticated approaches that investors can take.

Estimating Variations in the Equity Risk Premium: A New Approach
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For years, researchers have used historical returns as proxies for estimating equity risk premium. This approach is problematic, however, because the resulting estimates don't vary from one year to the next, even though equity market returns can be wildly divergent from year to year. Katsunari Yamaguchi, CFA, has developed a new method for estimating equity premiums.

Building a Better Risk Model
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When Ignacio Ruiz and his associates, Piero Del Boca and Ricardo Pachón, looked at the current models for directional-way risk, they found that the models were impossible to calibrate. So, they set about creating their own model.

Book Review: A Risk Professional’s Survival Guide
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This highly readable and informative book can serve the needs of a variety of individuals. The end-of-chapter problems make the book suitable for a classroom setting for those who plan to become practicing risk managers. Readers interested in gaining a general overview of risk management will also find the book valuable.

Liquidity Risks of the H2O Variety
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"Whiskey is for drinking; water is for fighting over." In these increasingly water-constrained times, this quote is as relevant as ever. The fact is water — or the lack of it — poses investor risks. Companies and investors can no longer ignore increasing competition over limited water resources.

The Battle for Your Strategic Soul: Knight vs. Coase
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Today, strategy adds value when it understands and exploits uncertainty better than the competition. Pure efficiency can no longer be the only way.

Beyond the Questionnaire: New Tools for Risk Profiling

Analyzing a client’s environment, their lifetime experiences, and even their genetic disposition for risk taking can lead to more reliable assessments of investor risk profiles and consequently better risk identification.

Why Demographics Are Core to Understanding Growth and Financial Markets
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There is opportunity to exploit a gigantic demographic dividend — but it is accompanied by many avoidable threats and risks.

Only Buy Insurance When You Can’t Afford the Loss
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Not buying insurance for things we can afford to replace or have happen does not mean that those things won’t occur, it just means that instead of having the small bleed of constantly paying premiums for things, we will once in a while be paying out larger replacement amounts for things we did not insure against. However, you should not save on insurance premium payments in instances where you can’t afford the loss.