Machine Learning: A Revolution in Risk Management and Compliance
After completing this reading, you should be able to: Describe the machine learning process and compare machine learning approaches. Describe the application of machine learning approaches in the financial services sector and the types of problems to which they can…
VaR and Risk Budgeting in Investment Management
After completing this reading, you should be able to: Define risk budgeting. Describe the impact of horizon, turnover, and leverage on the risk management process in the investment management industry. Describe the investment process of large investors, such as pension…
Performing Due Diligence on Specific Managers and Funds
After completing this reading, you should be able to: Identify reasons for the failures of funds in the past. Explain elements of the due diligence process used to assess investment managers. Identify themes and questions investors can consider when evaluating…
Portfolio Risk: Analytical Methods
After completing this reading, you should be able to: Define, calculate, and distinguish between the following portfolio VaR measures: individual VaR, incremental VaR, marginal VaR, component VaR, undiversified portfolio VaR, and diversified portfolio VaR. Explain the role of correlation on…
