How the industry got risk so wrong

With changing demographics leading to an ageing population, risk appetites lessen, and capital preservation becomes the main concern for advisers and clients. However, rising global correlations across asset classes are leading to higher portfolio risk and creating an industry wide conflict. Managing risk has therefore become more important than ever but the problem is that traditional risk management frameworks have let us all down. Most risk frameworks employ the Nobel prize-winning portfolio management concept MVO (Mean-Variance Optimisation), which forms part of modern portfolio t...