40% of managers buy instruments they cannot understand

KPMG survey shows more than 40% of managers across the world have bought financial instruments where they could not assess risk adequately

Over 40% of fund managers across the world have bought financial instruments over the past year where they struggled to assess risk adequately. A KPMG survey quizzing managers and investors on complex financial instruments in the wake of the credit crisis has called for a complete rethink on risk. It claims 31% of managers suspect they bought products before they had assessed risk adequately and 10% are certain of it. The report also found one in 10 managers believe they bought products on which levels of risk were mis-stated. Again 9% are certain they bought products where the risk w...