The higher-rate environment and volatility that buy-side firms are currently dealing with is something they have not experienced for more than a decade. Meanwhile, the move to more risky sources of return has led to liquidity issues and can make it difficult to manage portfolios. Alongside this, climate risk is the new elephant in the room, adding more pressure on risk teams to measure the impact on their portfolios.
This Risk.net paper, sponsored by S&P Global Market Intelligence, outlines the impact of the higher-rate, high-volatility environment on market risk and liquidity risk, and the emerging importance of climate risk. It addresses how investment risk teams at buy-side firms are adapting their approaches to these challenges and highlights the need for them to integrate emerging risk factors into their risk management processes to ensure their investment strategies continue to perform well, even in this challenging environment.