Day #32: Risk management analysis

One of the parts of portfolio management is risk management and their policies. Actually, risk management is a subject itself, with its life cycle, its tools and so on. It is difficult to go deeper without facing complicated stuff, but hopefully there are many resources available to help us.

Today I want to introduce you to one useful document that I found about risk assessment techniques. It is the International Standart IEC 31010. After a short description of key concepts such as uncertainty and risk, the process to implement a risk assessment policy is described in detail. Then, many risk assessment techniques are presented... and here it comes, the part I like the most. There is a categorization of techniques, so that we can quickly see which one is the most suitable for our problem. Besides, we could go for one technique or the other depending on which step of the risk assessment process we are at, and that is also included in the table.

Finally, the las pages are devoted to a thorough description of each techniques, including their limitations. I think that this document is outstandingly useful. I found the full document here, yet when I tried to access it today, I couldnt't... so here is a preview.