Active risk control

Richard Bibb explores the pitfalls of value-at-risk statistics and explains how they can be interpreted and incorporated into a meaningful risk management strategy

With the financial market meltdown of 2008 still ringing in the industry’s ears, risk management is now more important than ever. The question is: Do traditional approaches to risk management really protect you when times are bad?

Simple portfolio mistakes

Diversification is the key. Time and time again you will hear the same advice: Diversify to reduce your specific risk. This view is commonly held as being correct – and can easily be demonstrated mathematically – but few things in life are so