After a number of years in which we have all been using risk rating and ESMA bands, 2020 was the first test of how many funds would actually deal with managing risk for clients. Perhaps the more important test however, was how many would manage to contain risk to stay within a specified risk band.
Read Andy Ivory-Corr’s article ‘ESMA Bands, A Risky Business?’ here as it looks at Standard Deviation as a way of measuring risk and how we currently apply it to investments.
To find out about the New Ireland approach to risk rating, talk to your New Ireland Account Manager.