Sophisticated and demanding investors will seek to constraint the portfolio risk exposure to certain asset classes, and occationaly transfer risk to other parties. This is usually achieved by defining the maximum value at risk, and by setting trading permissions. In addition, it is neccesery to measure and monitor the portfolio's risk exposure, trading permissins and the trading activity.


While some trading ventures seek accept high expected returns and accept high risk, both the potential and possible consequences, certain risk management standards have come under criticism. But recent advances, for example auto-hedgers, does make it possible and feasible to control the risk in the sense that


˜˜-the portfolio risk can be accurately estimated and hedged

-decisions can be taken based on pre defined degree of confidence






need assistance?


       Hanxiao Zhang

      Lead Coordinator