Risk management review

It could be argued that risk analysis has been underutilised in some areas of financial services pre and post the current credit turmoil. It seems that it has been taken in blind faith that a cursory level of risk analysis is sufficient for broad based analysis, but in the future one can only expect a return to the traditional number-crunching when analysing the risk of a variety of investment products. A basic starting point when analysing risk is to look at the volatility of returns which an investment offers. This is calculated as the standard deviation of returns over a given time per...