A note on the concept of risk

Abstract

This paper is about risk and about a critical view of the risk concepts we normally apply. That said, my ambition is not to launch a formal criticism of theoretical aspects of risk in financial markets, nor to make you believe in one particular investment style or product. My intention is primarily to make people reflect on some of the things one often take for granted, and also to be a bit more sceptical of some of the risk measures portfolio managers typically apply when making investment decisions.