In the bear market's wake, "risk management" has become the most over-used phrase in the financial lexicon. You can't read an investment brochure these days without several references to how risk is being monitored, managed or controlled.

Part of this trend is positive, because it caters to investors who are more cautious and risk-conscious. Also, financial advisors have developed more skill in applying risk metrics – such as Beta and standard deviation.

But the flipside of the trend bothers me. In some instances, I believe Beta and standard deviation are being misapplied or miscommunicated. In this article, I'll suggest two other risk-monitoring metrics that may help you serve your clients better in today's dynamic markets.

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

  • Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and events
  • Access to other award-winning ALM websites including and

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.