What is Cryptocurrency Portfolio Allocation? Modern portfolio theory teaches not to put all your investment eggs in one basket in order to diversify returns and weather the ups and downs in markets. While allocating a crypto portfolio shares similar principles to allocating a portfolio of more traditional assets like bonds, stocks, and real estate, there are…
Private Wealth Career Overview Private wealth management involves providing personalized investment advice to high net worth individuals (HNWIs — $1-10 million in investable assets) and ultra-high net worth individuals (UHNWIs — $10 million or more in investable assets). The goal of wealth management is to help clients achieve what their definition of financial security is…
What is a Material Adverse Change (MAC)? A material adverse change (MAC) is a significant change or effect that may negatively influence the outcome of an agreement. Buyers, sellers, and creditors use MAC clauses in merger and acquisition (M&A) or financing agreements to protect their rights. MACs are also known as material adverse effects (MAEs)….
Cryptocurrency vs Stocks As more and more investors and speculators flock towards cryptocurrencies as an asset class, many have started likening them to stocks. While crypto and stocks do indeed share certain characteristics, they are fundamentally different. Cryptocurrency vs Stocks – Similarities Let’s start by looking at the similarities between cryptocurrencies and stocks. 1. Risk…
What is Enterprise Risk Management for Financial Institutions? Enterprise risk management (ERM) for financial institutions refers to the systems in place to identify and manage all risks within a financial services firm. These include financial risks, operational risks, event risks, and strategic risks. Why is Enterprise Risk Management Important for Financial Institutions?…
What is the Financial Risk Management Process? A financial risk management process is a series of steps undertaken to identify potential financial risks, assess their severity, and identify how they can be managed. The overarching process of any risk management process is the following: Identifying the risk Assessing and quantifying the risk Defining strategies to…
What are Financial Risk Management Strategies? Financial risk management strategies are a plan of action or policies that are designed to deal with various forms of financial risk. The strategies are important for any firm or individual to manage the inherent financial risks that come with operating within the economy and financial system. Examples of…
What is Human Capital Management (HCM)? Human capital management (HCM) refers to how an organization recruits, engages with, empowers, and ultimately retains its people. The concept of human capital management has always existed, although it was primarily considered the domain of HR (Human Resources). But as ESG (Environmental, Social & Governance) has evolved as an…
The Importance of Risk Management in Finance Explained Risk management is particularly important within the field of finance, and over time has become increasingly important for each and every player within the financial services ecosystem. During the 2008 Global Financial Crisis, many vulnerabilities in our risk management systems were uncovered. Since then, governments, financial services…
The Importance of Financial Risk Management Books Like any discipline, financial risk management has best practices and standards that have accumulated and become more sophisticated over time. Financial risk management books allow new and aspiring risk managers to quickly learn these best practices and standards. These books also provide insight into previous financial mishaps, exploring…
