Risk Management | LFG Investment Consulting SA

RISK MANAGEMENT SERVICES

HOW DO WE MEASURE RISK?

VOLATILITY

It is the standard measure of risk, with many shortcomings…

MONITORING

This is the first step. Knowledge is crucial to take right decisions.

VAR

…This is why economic theory has developed further measures, like VAR (Value At Risk).

DIVERSIFICATION

The risk of a big loss can be minimized at portfolio level, if effective diversification is implemented.

STRESS TEST

One can create a theoretical scenario, setting some critical variables (i.e., rates, currencies, valuations, etc.) and test portfolio returns.

ESG & ETHICAL STANDARDS

Keeping a high ESG score reduces dramatically the risk of huge losses due to scandals, fraud, lawsuits, etc

FACTOR ANALYSIS

One look at portfolio factors' sensitivities. The result is a measure of which events affect the portfolio more.

QUALITY VS PURE RETURNS

Manager evaluation on performance only incentivizes excessive risk taking. Acceptable returns on good quality assets should be preferred.

AMPLE RISK MANAGEMENT CAPABILITIES

Actively taking risks to generate a positive excess return in our portfolios. Constructing portfolios in such a way that the impact of any loss stemming from taking risks is within the expected boundaries. Unintended risks are avoided, mitigated, or transferred, as there is no need to take a given risk if there is no reward expected.

ESG FACTORS CONSIDERATION

Weaving ESG factors into our investment analysis to increase return potential and reduce the risk of huge losses due to scandals, fraud, lawsuits, etc.. and protect the portfolio against reputational risk.

Home

LIC’s risk management services are designed to help individuals and institutions identify and mitigate potential risks to their financial assets. We understand that every client has different needs, goals, and risk tolerance, that's why we provide a personalized approach to risk management.

Our process begins with a thorough analysis of our client's current financial situation, including their assets, liabilities, income, and expenses. This allows us to gain a complete understanding of their financial profile and identify any potential risks.

Once potential risks have been identified, we work closely with our clients to develop a comprehensive risk management plan that addresses those risks. This plan can include a variety of risk management strategies, such as:

Insurance policies: We help our clients to protect their assets by recommending insurance policies that mitigate risks such as accidents, illnesses, and property damage.

Investment strategy: We create a diversified portfolio of investments that aligns with our client's risk tolerance and financial goals.

Risk monitoring: We continuously monitor our client's risk exposures and make adjustments as necessary to ensure that the risk management plan is still effective.

LIC’s team of experienced financial advisors and wealth managers is dedicated to providing personalized service and expert guidance to help our clients achieve their financial goals.

We are available to meet with our clients regularly to discuss their financial progress and make any necessary adjustments to their risk management plan.