Understanding risk: why volatility is important

Since the beginning of the current debt crisis, the word ‘volatility' has become even more prevalent in the lexicon of financial services professionals, the media and, increasingly, the public at large. But the wider proliferation of the concept of volatility hasn't led to a better understanding of what it really means, and the effect it can have on your clients. We believe that, in order for advisers to deliver the best service to their clients, they should fully understand what is meant by volatility, and how it applies to them. So, what is it? Volatility is a way of measuring the d...