Managing risk and preserving capital for our clients are of primary importance to us. For this reason, we have developed a rigorous risk management framework monitoring various of types of risks, with the objective of keeping them within predefined limits.
Market risk is the possibility of losses arising from adverse movements in market prices. It is usually measured by the volatility of the instruments in the portfolio, and it can be further classified in equity, interest rate, currency, and commodity risks depending on the types of asset classes in which a portfolio is invested.
In order to control our market risk, our automated risk management technology periodically monitors the the volatility in our investment portfolio and rebalances accordingly to keep it within predefined levels set by the investment committee.