Risk management and risk analysis is a process that allows individual risk events and overall risk to be understood and managed proactively, optimising success by minimising threats and maximising opportunities and outcomes.
Risk management is focused on anticipating what might not go to plan and putting in place actions to reduce uncertainty to a tolerable level.
Risk can be perceived either positively (upside opportunities) or negatively (downside threats). A risk is the potential of a situation or event to impact on the achievement of your specific portfolio objectives.
A variety of tactics exist to ascertain risk; one of the most common is standard deviation, a statistical measure of dispersion around a central tendency.
Working with your portfolio manager, the risk management team ensures that risks are clearly identified before moving on to the risk analysis step of the risk management process. Your portfolio manager will ensure that there are multiple exit strategies with every investment.
A risk register is used to document risks, analysis and responses, and to assign clear ownership of actions.
Compound Capital provides tools to help you understand portfolio risk and performance across asset classes to support informed investment decisions. Our flexible user-configurable reports and interactive what-if analysis tools seek to meet the needs of risk managers, portfolio managers, compliance officers and executives.
Compound Capital PTY LTD (ABN: 68 114 194 286) holds an Australian Financial Services Licence (AFSL Number: 290981).
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