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Five Stories that Outline the Future of Risk Management

Written by FactSet Insight | Apr 9, 2019

In recent years, calculating and accounting for risk have become an increasingly  critical piece of the investment decision making process. At FactSet Insight, our experts have dedicated considerable resources to helping readers understand the risk ecosystem and the various approaches to managing it. 

Here are five  risk articles that show where risk management is headed.  

Spikes in Volatility: The New Normal

For many decades, financial markets were characterized by periods of “normal” behavior followed by shorter periods exhibiting higher probability of extreme events, i.e., stressed periods. This is no longer the case. Boryana Racheva-Iotova looks at why. 

Turbulence Adjusted Risk: Applications for Asset Allocation and Selection

In this article, Alyx Flournoy discusses how a fat-tail approach to modeling market risk can greatly improve processes around risk management and portfolio construction. 

The Importance of Regional Styles

While it may be true that most well-known style premia seem to exist in most markets, it is not true that the same style premia between markets behave in a uniform way. For example, Value companies in Australia and Value companies in the U.S. should not be expected to behave the same. Here, Ian Hissey takes a deeper look at how and why regional styles matter. 

In Risk Management, Fear Is a Step to Investment Wisdom

The observation that fear is the beginning of wisdom is as old as humanity. In this article,  Boryana Racheva-Iotova discusses how the relationship between fear and wisdom influences the management of risk.  

Six Takeaways on the Latest Trends and Solutions in Risk Management

In this article, Alyx Flournoy breaks down the trends uncovered in a recent panel discussion hosted by FactSet.