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.
Volatility has been at the forefront of many investors’ minds over the past couple of weeks. But in the midst of the short-term upheavals and reactions, it’s all too easy to lose sight of the longer term impact of volatility. In this blog I take a closer look at volatility as a measure of risk. Whilst it has its drawbacks, it also has some important advantages, particularly for long-term investors.;