The world of risk management will look completely different ten years from now according to Damian Handzy, Chair and CEO of Investor Analytics who spoke at the 2011 Investment Innovation Conference in Bermuda. We sat down with Handzy at the conference to get his views on how the risk space has evolved and what kinds of innovations will continue to transform it in the future.
As he points out, measures like volatility and mean reversion are becoming increasingly irrelevant as plan sponsors focus on key threats to their liabilities, right down to basics such as what discount rate they are using. At the same time, fallout from the 2008 Financial Crisis will continue to change how we understand economics and markets, says Handzy. “We finally recognize that it’s time to redefine the game.”
Click on the image to watch our interview with Handzy.