How investment managers should respond to new risk challenges

Looking beyond trade wars and Brexit

The myriad challenges facing investment managers seem to multiply with the days, months and years – it is difficult to remember a time in my nearly-30 years in this industry when the risk management dynamics were shifting so swiftly as we lurch from one thorny issue to the next.

The full array, from trade tensions between China and the US, through Brexit and political turmoil in the US in the form of impeachment proceedings, to the existential threat of climate change, means that investors must work harder than ever to digest the implications and manage the risks they can.  Navigating risk through late-cycle squalls There are three principle issues that modern risk management must face. First is the nature of how we got to this point, a period of incredible returns for equities since the Global Financial Crisis and a 30-year decline in bond yields, and the im...