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.
An academically grounded introduction to risk parity: what it is, how it reallocates risk rather than capital, and why institutions use it to build more resilient long-horizon portfolios across economic regimes. Includes mechanics, inputs, illustrative examples, and practical implementation considerations.
A rigorous explanation of portfolio volatility, how to attribute it to individual holdings and risk factors, and why understanding the sources of volatility supports resilient, long-horizon portfolio construction and capital planning decisions. Includes practical, numeric illustrations.
A rigorous explanation of risk concentration across holdings, how it emerges at the portfolio level, and why understanding it is essential for resilient, long-horizon portfolios. Includes practical examples, measurement techniques, and common blind spots without offering investment advice.
A detailed examination of frequent portfolio-level risk errors, why they emerge, and how they undermine resilient, long-term capital planning. The discussion focuses on interaction effects, hidden exposures, and practical context without suggesting specific trades.
An examination of where portfolio risk models help, where they break, and how understanding their limits supports resilient long-term portfolio construction and capital planning. The discussion covers estimation error, regime shifts, tail dependence, liquidity and implementation frictions, and governance practices for using models responsibly.
