22 May 2019
Authors from the Risk measures working party presented their paper “Investment risk for long term investors: risk measurement approaches - Considerations for pension funds and insurers” at a Sessional Research Event meeting in London on 18 March. The presentation covered the fundamentals of investment cash flow shortfall risk for the long term investor, followed by perspectives from each of the pensions and life insurance industries, equity investment portfolio risks and returns, and alternative risk measurement approaches. Some key themes from this research:
- risk measurement approaches matter since they impact perceptions, and hence investment actions;
- appropriate emphasis should be placed on the economic objectives of the ultimate investor;
- investment risk management is not equal to volatility risk avoidance; and
- risk has many facets - one size does not fit all.
Read the paper or view a recording of the event