In April, the Securities and Exchange Board of India (SEBI) took a bold step: mandating that key employees of asset managers invest about 20% of their salary in the schemes they run or oversee. A direct order to fund managers to have skin in the game!
Risk is an elusive concept as most dangers don’t materialise. As a risk manager, I’m always looking for new ways to better define and measure risk, constantly on the lookout for underappreciated threats to try to make sure we’re not sleepwalking into the next crisis. This blog introduces one of our cornerstone approaches for understanding portfolio risk. ;