IDEAS home Printed from
MyIDEAS: Login to save this article or follow this journal

Best practices for investment risk management

Registered author(s):

    A successful investment process requires a risk management structure that addresses multiple aspects of risk. In this paper, we lay out a best practices framework that rests on three pillars: risk measurement, risk monitoring, and risk-adjusted investment management. All three are critical. Risk measurement means using the right tools accurately to quantify risk from various perspectives. Risk monitoring means tracking the output from the tools and flagging anomalies on a regular and timely basis. Risk-adjusted investment management (RAIM) uses the information from measurement and monitoring to align the portfolio with expectations and risk tolerance.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    File Function: Full text
    Download Restriction: no

    Article provided by Capco Institute in its journal Journal of Financial Transformation.

    Volume (Year): 28 (2010)
    Issue (Month): ()
    Pages: 37-43

    in new window

    Handle: RePEc:ris:jofitr:1414
    Contact details of provider: Postal: 120 Broadway, 29th Floor New York, NY 10271
    Phone: +1 212 284 8600
    Web page:

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:ris:jofitr:1414. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peter Springett)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.