Ortec Finance was delighted to attend TSAM Toronto on May 2 2019, where Pieter Wijnhoven presented Reimagining Risk Measurement – Long-Term Forecasts over Short-Term Volatility.
Context: Do asset managers truly measure risk, or are they simply measuring volatility? There’s an argument to be made that risk is only being measured on a ‘real time basis’ in order to match human being attention spans and ease concerns – but wouldn’t it make more sense to measure it against longer term forecasts?
Insights & Takeaways: This in-depth presentation will weigh-up the merits of transforming how risk measurement is conducted to better serve a long-term approach; and in doing so, ease the disconnect between that and the forecast. This presentation will explore how exactly this approach will enable investors to make more educated decisions based on forecasts rather than short-term frequencies; improving your scenario analysis & stress tests to incorporate longer-term conditions and therefore enhance portfolio robustness; and what else risk leaders need to do to make this a reality by changing attitudes and approaches internally.