So far three methodologies for a quantitatively driven process of portfolio construction have been examined. The results of the empirical study show that the way of accounting for skewness, kurtosis and autocorrelation in return series has significant impact on portfolio weights. Measured by riskadjusted performance numbers as well as stochastic dominance criteria, the identified differences [...]
Experience shows that risk must be actively managed and accorded a high priority, not only within the decision-making process but permanently and throughout the organisation. This might mean that risk-management procedures and techniques are well documented, clearly communicated and regularly reviewed and monitored. In order to manage risks, you have to know what they are, [...]
It is harder to assess the risks inherent in a business decision than to identify them. Risks that lead to frequent losses, such as an increasing incidence of employee-related problems or difficulties with suppliers, can often be overcome using past experience. Unusual or infrequent losses are harder to quantify. Risks with little likelihood of occurring [...]
Once risks are identified they can be prioritised according to their potential impact as well as the likelihood of them occurring. This helps highlight not only where things might go wrong and what their impact would be, but how, why and where these catalysts might be triggered. There are many potential risk catalysts. Five of [...]
My name is Emily Mortimer. I'm an academy professor with a degree in economy and considerable experience in training both students and private contractors in matters of business, finances and money management.