Summary of the session
50 minutes of structured CPD
Agenda
- Risk – what it is and how to work with it
- The Risk Governance Model
- The relevance of ‘term’ to investment risk
- Moody’s Asset Allocation and the use of stochastic modelling
- Value at Risk versus Volatility banding
- Use of cash flows
Learning objectives
The learning objectives of this session are to:
- Understand what Risk is and why it is such a vital consideration in managing investments
- Gain awareness of how to create better outcomes in financial planning by optimising investment in risk and reward using stochastic modelling
- Understand what stochastic modelling is and why it plays such an important role
- Understand the influence of Risk on the development of Regulatory frameworks
- Understand the high level process for defining financially material engagement themes
- Increase familiarity with the Risk Governance Model and the importance of ‘term’ in relation to this
- Consider why Value at Risk (VAR) may be a better approach for advisers than Volatility banding
- Gain awareness of cash-flow planning
Assessment
Pass = 4 out of 5