Practical Applications of A Risk Management System That Works

Practical Applications Summary

In A Risk Management System That Works, from the June 2019 issue of The Journal of Investing, author Robi Elnekave (of Investment Management Institute) describes the importance and impact of a risk management system for portfolio construction. He attempts to define a unifying portfolio framework that resolves current questionable assumptions of portfolio construction and provides critical understanding of the sources of risk. His economic risk model (ERM) is used to predict asset class behavior and to address shortcomings associated with traditional risk models.

TOPICS: Risk management, financial crises and financial market history, factor-based models, portfolio construction