Using real-world scenarios to improve the resilience of private investment portfolios

Although analysis of experience data helps investment managers assess how their portfolios and assets would have performed against past crises, the next crisis will be different. Improving investment strategies against future risks requires tests against scenarios of likely – and unlikely – events across a wide range of potential causes.

abrdn, in partnership with Risilience, has created a report that sets out to incorporate scenario approaches with the latest developments in enterprise risk modelling techniques developed by Cambridge Centre for Risk Studies at the Judge Business School, University of Cambridge, for market and macro risks, to measure portfolio exposures to risk factors that can impact the individual constituents of an investment portfolio – often described as ‘idiosyncratic risks’.

In addition, a webinar panel came together to discuss the topic in more detail, comprising:

-Professor Danny Ralph, Academic Director, Cambridge Centre for Risk Studies

-Lulu Wang, Portfolio Strategist Global Private Market Solutions, abrdn

- Dr. Andrew Coburn, CEO, Risilience

Watch the webinar and download the report below.