• Angus Crennan

2008 Confessions of a Risk Manager

Posting this because its resonates with market conditions in 2021.

Key points to note:

  1. 2007 started feeling riskless

  2. Risk departments relied on ratings and regulators

  3. Risk management has a natural conflict of interest with maximum return

  4. Lessons are dont neglect bottom up security selection in risk management, respect liquidity risk and the importance of risk management

For Balmoral clients - from inception to end March 2021 the Balmoral Fund has a beta to global equities around 0.38. In recent years we have been very careful with risks we have taken for reasons we have been very transparent about.

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