What is a “Risk Utility℠” Anyway?
A utility is always ready when the user needs it. You expect a wall outlet to always deliver electric current and a land line to always have dial tone. The concept behind ATA RiskStation™ is that questions about portfolio risk can arise at any time so timely and current answers need to always be available on demand.
Why Do We Process Daily?
- Markets and market relationships change over time
- Portfolio asset mix evolves over time
- Relationships between portfolio components change over time
- Volatility is a constantly moving target
- Firmly held assumptions can prove untrue at the worst possible time
- The risk profile for a client or portfolio allocation is not static – periodic meetings are only snapshots
- No advisor or portfolio manager has time to monitor risk for every client or portfolio allocation every day
- ATA RiskStation™ runs daily and can send out risk alerts as needed to trigger timely advisor/client conversations
- Daily processing allows confirmation of alignment between current client portfolio risks and recently expressed client risk tolerances