Measured by people who do not run the money.
Risk monitoring is functionally separate from portfolio management. Exposure, liquidity and concentration are measured against agreed limits continuously, and a breach is reported upward on the day it happens.
We test portfolios against scenarios rather than averages: a funding squeeze, a sharp rate move, a currency shock, a market that simply stops trading for a while.
The purpose is not to avoid every loss. It is to make sure no single position, counterparty or assumption can do lasting damage.
Stress first, allocate second.
Every allocation is examined for what it does in bad conditions, not only in the expected case. If the answer is unacceptable, the size changes before the trade is placed.
- ·Rate, currency and liquidity shocks modelled
- ·Concentration limits by issuer, sector and country
- ·Drawdown thresholds agreed in advance
A limit you are willing to move under pressure was never a limit.
What is watched, and how often.
- Exposure against policy limitsContinuous
- Liquidity and redemption coverContinuous
- Counterparty concentrationReviewed monthly
- Scenario and stress testingQuarterly and on request
- Breach reportingSame day
See how risk shapes each strategy.
Risk controls are built into the design of every solution, not applied afterwards.