New ways to think about risk

Risk means different things to different people. Our context here is investment and, in particular, decision-making by asset owners. Those decisions relate to the mission of a fund, which is generally expressed as a desire to meet liabilities or other future commitments whilst balancing the needs of different stakeholders. Risk in this mission context is a multi-faceted concept with a focus on the possibility of shortfall (of liabilities or future commitments not being fully met…