Risk Metrics & Drawdown Control
We design risk measurement frameworks and drawdown control mechanisms — giving your investment governance the quantitative guardrails that prevent small problems from becoming portfolio-damaging events.
Risk Metrics Scope
- Risk metric selection & calculation standards
- Drawdown limit framework & breach protocols
- Volatility monitoring & threshold design
- Concentration risk measurement
- Scenario & stress test framework
- Risk dashboard design & reporting cadence
Our Advisory Services
Risk Metric Framework
We select and define the risk metrics most relevant to your portfolio and mandate — volatility, beta, tracking error, VaR, CVaR, drawdown — establishing consistent calculation standards and reporting frequency.
Drawdown Control Limits
Maximum drawdown thresholds at portfolio and position level — with escalation protocols, review triggers and defined responses when limits are approached or breached.
Concentration Risk Monitoring
Regular measurement of concentration by position, sector, geography, currency and counterparty — with limit framework and breach process designed to prevent unintended risk accumulation.
Stress Test Design
Scenario-based stress testing across macroeconomic, geopolitical and market-specific shocks — quantifying portfolio impact and identifying tail risk concentrations before they materialise.
Risk Dashboard
A consolidated risk dashboard — updated at defined frequency — presenting all key risk metrics, limit utilisation, drawdown status and scenario analysis results in decision-ready format for governance bodies.
Breach Response Protocol
Documented responses for each level of limit breach — amber (review), red (halt and escalate), critical (mandatory remediation) — with ownership, timeline and documentation requirements.
Built for Real Outcomes
Risk management without metrics is aspiration without accountability. You cannot manage what you cannot measure, and you cannot measure consistently without defined standards.
We design risk frameworks that are rigorous enough to provide genuine governance protection — and practical enough to be used consistently rather than ignored under pressure.
Risk Categories We Measure
- Market risk: volatility, beta, duration, correlation
- Credit risk: counterparty exposure, spread duration
- Liquidity risk: portfolio liquidity ratio, redemption coverage
- Concentration risk: position, sector, geography, currency
- Operational risk: process failures, key person dependency
Risk Metrics We Define Standards For
- Annualised volatility (rolling 12/36 month)
- Maximum drawdown (peak-to-trough)
- Sharpe ratio & information ratio
- Tracking error vs benchmark
- Value at Risk (VaR) at 95%/99% confidence
Limit Breach Levels
- Green: within limits — monitor and report
- Amber: approaching limit — review and document
- Red: limit breached — halt, escalate, remediate
- Critical: severe breach — board notification required
How We Work
Metric Selection
We identify the risk metrics most relevant to your mandate, asset class and governance model.
Limit Design
We design the limit framework — thresholds, breach levels, escalation and response.
Dashboard Build
We design the risk dashboard template and reporting cadence.
Stress Testing
We design the stress test scenario library and integrate it into the reporting cycle.
Frequently Asked
Ready to Build a Risk Metrics Framework?
Our Reporting & Controls team designs quantitative guardrails that give your governance real teeth — not just documentation.