Key dialogue factors
- Making ready for a brand new danger setting: Discover how geopolitical instability, financial fragmentation, inflation, local weather danger, and technological disruption can improve tail danger and problem conventional diversification.
- Stress testing portfolio vulnerabilities: Look at how sensible situations can uncover hidden exposures, take a look at assumptions, and inform hedging and asset allocation choices.
- Avoiding “mannequin on, mind off”: Take into account why portfolio managers want to stay skeptical of quantitative fashions, notably throughout market shocks and regime modifications.
- Mannequin governance within the age of AI: Discover the significance of separating mannequin improvement from validation and strengthening post-deployment monitoring for advanced AI methods.
- Liquidity danger and personal credit score: Perceive how ostensibly liquid belongings can behave in periods of stress and the way restricted transparency can conceal focus dangers.
- Systemic danger and monetary resilience: Look at how regulatory stress checks, authorities debt, constrained fiscal capability, and geopolitical shocks can affect portfolio dangers and market habits.
How can funding organizations harness AI to enhance decision-making whereas preserving accountability, governance, and human judgment?
On this episode of Conversations with Frank Fabozzi, CFA, Til Schuermann examines how portfolio managers can navigate an more and more unsure and interconnected danger setting. Drawing on his expertise as Associate and World Head of Finance and Threat at Oliver Wyman and his earlier work on the Federal Reserve Financial institution of New York, he explores stress testing, mannequin danger, liquidity, personal credit score, regulation, and the vulnerabilities that may emerge in periods of market disruption.
The dialogue will contemplate how funding professionals can problem assumptions, determine hidden exposures, and strengthen portfolio resilience when markets behave in ways in which historic fashions might not anticipate.
