Risk Management

An important aspect of investment, but often overlooked in pursuit of returns, is portfolio risk management. Risk can come in many different forms for a portfolio and thus takes many considerations when building a portfolio.

At P1 we do extensive research in to risk and use proprietary methods to stress test our portfolios. Our portfolios are tested against historical financial crisis and importantly, against hypothetical future events and constraints. This allows us to observe their response and further our understanding, adapting the portfolios where necessary. Our financial risk research is written up in our articles but we also write about the impact of risk on clients’ portfolios and the responsibility of the Financial Adviser or the Trustee to relay and the concept and varieties of risk to those they are responsible for.

Human nature, financial crises and investing in the face of uncertainty

While markets regularly seem to have periods of falling prices, advisers can often seem to focus on the upside, directing…

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Steady as she goes: market crises require transparency and caution

Quintin Rayer advocates caution and transparency when discussing investments and market crises with clients. Although markets regularly go through periods…

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Does ‘low risk’ really mean low risk?

Does ‘low risk’ really mean low risk? Previously Quintin Rayer looked at risk in financial products; with emphasis on the…

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Market crises: should we discuss them more – including with our clients?

Dr Quintin Rayer discusses how even though markets regularly have periods of falling prices, financial professionals seem to focus on…

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Anticipating Market Crises

Quintin Rayer explores the fundamental causes of financial crises and sketches a possible approach for better managing investments. Although markets…

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The Fundamentals of Market Crises: Avoiding a Financial Black Hole

Advisers should be forming judgements about the likelihood of developing market crises and discussing them with clients. Although markets regularly…

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Crisis management: IFAs must discuss market risks with clients

Advisers should spend more time discussing the potential effects of future crises on client investments, despite their inherent behavioural biases,…

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Hypothesis: Risk, like Mass and Energy, Can Neither be Created nor Destroyed.  Discuss

Quintin and Will imagine the title as an essay question in a final financial examination and use this as a…

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Spotting the next crisis: is it time for managers to pay more attention?

Markets regularly have periods of falling prices, but financial professionals seem to focus on the upside, directing relatively little effort…

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