An optimal investment strategy is only one aspect of successful wealth management – the other is careful risk management, which serves to help recognize opportunities and minimize risks.
When structuring a portfolio, we already ensure that risks are minimized or even eliminated. Nevertheless, risks have to be carefully monitored at all times to make sure that investment decisions are sound and market changes are identified quickly, and to respond to them adequately. This is particularly relevant for clients who are legally obliged to ensure full compliance with certain investment regulations.
Our risk management system enables us to monitor formal, absolute and relative risks on an ongoing basis, following a systematic approach and using state-of-the-art technology. This is a computerized process whose output is reviewed by our risk management experts.
Formal risk monitoring involves maximizing the weighting of individual asset classes and considering all relevant restrictions. In a second step, we match the outcome against the client’s specific requirements.
Absolute risk monitoring involves reviewing stop-loss limits and again, matching the outcome against the client’s instructions.
Here, we assess a portfolio’s volatility and the possible value at risk under certain market conditions. The results are matched against a comparable portfolio, with adjustments made if necessary.
This three-stage risk management system produces an optimal level of security for our clients’ portfolios.