Spreading risk exposure is a common risk management technique in insurance, reinsurance and finance. A well-diversified portfolio of uncorrelated assets can eliminate the non-systematic risk and thus improve an investor's risk profile.
A few decades ago, by simply allocating money in different countries or sectors, investors could achieve large diversification benefits. Today, due to different aspects, such as increasing globalisation, new technologies and the introduction of the common Europ
The week on Risk.net, September 8-14, 2018Receive this by email