RIAs cite risk management as a top concern

Market volatility and debt exposure on both sides of the Atlantic have driven many investors and financial professionals to develop comprehensive risk management procedures, both for speculation and credit decisions. Among registered investment advisers, risk and market fluctuations are now the two leading concerns facing the profession, according to a new survey by Cogent Research and Invesco. The report found 70 percent of RIAs cited market volatility, followed by retirement planning (23 percent) and wealth accumulation (6 percent). "Given their clients' current mindset, 45 percent of RIAs said managing risk is now their top priority in terms of portfolio construction, ahead of wealth preservation (24 percent), exceeding a performance benchmark (12 percent) and delivering absolute return (10 percent)," said Andrew Scherer, managing director of Invesco's RIA division. In the banking sector, institutions are adopting consumer credit risk management strategies to rein in losses stemming from home foreclosures, debt defaults and insolvencies. While consumer credit card debt is near record-lows, issuers are beginning to ramp up their offers in an effort to increase interest ahead of the holiday shopping season.