Over the past decade, risk has forged a more central role within asset managers’ investment process, evolving from a compliance function to play an active part in trading and strategy development. Today’s investors view a firm’s risk strategy as a key differentiator in manager selection.
But even well-established risk functions are challenged in times of crisis. As volatility rises and new threats emerge, risk managers must react quickly and ensure their analysis remains practical, actionable, and transparent. The coronavirus pandemic has provided risk managers with complex new challenges and an opportunity to evolve their processes once again.
This two-part audiocast series produced by Risk.net and MSCI examines the changing shape of risk in investment, the lessons learned from the current crisis, and how risk can be used to drive performance in volatile times.
In this second audiocast, Oleg Ruban, Head of Analytics Applied Research, Apac, at MSCI, offers an Apac perspective on how a more holistic view of risk can inform investment strategy to play an active role in opportunistic alpha capture.
- Risk in investment – from defence to offence [00:45]
- Negative oil prices example – threat and opportunity [03:25]
- The transition to an holistic view of risk [05:18]
- Controlling drawdowns, optimising returns [07:20]
Click the orange "Listen" button above to open the player
Download part one of this series, where Oleg Ruban explains what’s needed to take a multi-dimensional view of risk during times of crisis.
You can also read more about the evolution of risk in investment in the accompanying article to this series ‘Using risk analytics to highlight opportunities in volatile markets’.