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risk

Risk has no universal definition and its meaning tends to vary, but it can be managed, and the first step in this process is to identify the risks inherent in the portfolio or strategy

The world used to be very simple. The stock market moved on a perpetually upward track and investors' risk concerns were limited to the possibility that their portfolio would lag the benchmark index. In such an environment it is not surprising that tracking error became the key risk measure. Sadly, these days are now far behind us. Investors savaged by the bears in the early part of this decade now take a much greater interest in risk. As a result, risk management is swiftly rising to prominence in the lexicon of industry buzz phrases. Despite this gathering importance, risk management ...