Further it must be discussed if the results of these risk measurements can be properly communicated to customers. For this reason the Institute has developed a new approach for risk measurement in cooperation with the “Deutsche Schutzvereinigung für Wertpapierbesitz e.V.” (DSW). The results and the concept of a “Dynamic Risk Measurement” are shown in a jointly published study.

An abstract of this study can be downloaded below. The entire study can be ordered for a nominal charge of 80,- EUR by sending an order-request to mail@institut-va.de.

Development of the actual capital-loss-risk of an investment in a worldwide allocated equity fund over a holding period of 15 years.
(Monte-Carlo simulation of the VaR with respect to different long-term stress scenarios.)

Source: Institut für Vermögensaufbau, Benefits of risky financial products and development of a time-sensitive risk-measure (February 2010)