Rethinking Risk Metrics
Standard deviation and variance often fail to connect with the real risks that investors face, as they don’t align with the practical needs of managing a balance sheet. Many sophisticated models overlook critical information, such as sequence risk and market downturns, leading to decisions that may not adequately protect assets. Ultimately, the language of risk management needs to evolve to better reflect the realities of investment challenges.In this clip
From this podcast
Capital Allocators – Inside the Institutional Investment Industry
Karyn Williams – Measuring Risk Practically at Hightree Advisors (Capital Allocators, EP.163)
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