As allocations to alternatives grow, the approach to risk management is evolving in parallel. Emerging technologies are reshaping how threats are identified and addressed, yet ongoing global uncertainty continues to pose fresh challenges.
Rethinking Risk in Alternatives
Before exploring specific tools, it’s important to consider what defines alternative investments from a risk standpoint. Unlike public markets, alternatives are typically less liquid, more difficult to value, and often carry heightened legal and regulatory risks.
They can also introduce concentration risk—particularly when portfolios rely heavily on a narrow set of assets or sectors, amplifying exposure to individual performance.
In this context, the golden rule of investing becomes even more critical: don’t put all your eggs in one basket.
