The following is a guest post by Jaskaran Singh, a risk management professional with over 30 years experience in the finance industry.

 

The majority of the Fund Management Industry identifies the geographic exposure of an entity by headquarter location, place of primary listing or place of incorporation. In a globalized world where a company receives revenue streams from around the world this obscures country risk. This calls into question the reliability of industry asset allocation and diversification strategies and the prediction capability of conventional portfolio risk modelling techniques.

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