Practical Issues in Choosing and Applying Risk Management Tools
Jacques Longerstaey · AIMR Conference Proceedings · 1999
R isk management systems range from the overly simple to the numbingly complex. Somewhere in between is the appropriate approach to risk management for most investment management organizations-an approach that addresses key risk exposures with understandable risk measures in a user-friendly risk management model. This presentation focuses on some of the practical issues involved with trying to implement a risk management framework-issues that include defining risk, agreeing on risk measures, recognizing deficiencies in such widely used measures as tracking error, and deciding whether to buy or build the appropriate risk measurement models.