by Samuel Won
It has been over five years since the start of the largest financial crisis since the Great Depression. Given the spectacular failures of many major financial institutions and the huge losses suffered by almost all investors, ranging from institutional to “mom and pop”, the term “risk management” is now a part of everyone’s lexicon. Why are institutional investors – such as endowments, foundations, pension funds and family offices – in particular beginning to perform more formal risk management as it relates to their investment portfolios? What is driving this change? Below I present some observations on this topic based on the experience I’ve had in advising institutional investors about risk.
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