Managing portfolio-level risk rather than single-trade risk.
This scope is designed to help you build a practical understanding of Portfolio Risk Management. Lessons move from core definitions to real-world context and common failure points.
Reading in order is recommended, but each lesson stands on its own.
A rigorous distinction between portfolio risk and trade risk clarifies how individual positions aggregate into overall variability, drawdown potential, and long-horizon capital stability. This article explains definitions, measurement approaches, and practical examples that show why the distinction matters for resilient portfolio construction.
Portfolio-level risk describes the full distribution of potential outcomes for an entire set of holdings, not just for individual assets. This article clarifies how risk aggregates, why correlations and liquidity matter, and how institutions and households translate these ideas into long-term capital planning.
A rigorous, portfolio-level explanation of Total Exposure Explained, detailing how exposures are identified, measured, and aggregated to support resilient long-term portfolio construction and risk management, with practical examples across asset classes and factors.
A rigorous explanation of portfolio drawdown management, why it matters for long-horizon investors, how to measure and monitor drawdowns, and how portfolio-level design choices affect depth, duration, and recovery from losses in real-world market conditions.
Risk budgeting allocates the portfolio’s total risk across assets or factors with intention, rather than allowing risk to concentrate by accident. This article defines the concept, shows how it operates at the portfolio level, and explains why disciplined risk budgets support resilient, long-horizon investment plans.
An academically grounded guide to scenario analysis in portfolio risk management. It defines the concept, shows how it operates at the portfolio level, and explains why it is central to long-horizon capital planning, with practical illustrations in a diversified portfolio context.
A rigorous overview of how to define, measure, and govern leverage across an entire portfolio, with emphasis on risk, liquidity, and long-term capital resilience. The discussion integrates financing mechanics, derivatives exposure, collateral usage, and stress-testing in realistic institutional and individual contexts.
An in-depth explanation of portfolio stress testing, how it operates at the portfolio level, and why it is central to building resilient long-horizon investment programs. Includes practical scenario design, modeling considerations, and institutional use cases without offering investment advice.
A rigorous explanation of tail risk, how it manifests at the portfolio level, and why it matters for building resilient, long-term investment portfolios, with practical measurement frameworks and real-world context drawn from major market episodes. No investment advice is provided.
A rigorous overview of how to monitor portfolio risk as a continuous process, why it matters for long-horizon capital planning, and how to structure measurement, interpretation, and reporting across market regimes without giving investment recommendations.
