“In defence of pro-cyclicality”, by Adina Griguriu from Active Asset Allocation, in IPE.com

Adina Grigoriu asks, is pro-cyclical risk management necessarily a cost – or can it be an unexploited source of performance? 

«EIOPA’s call for advice on the review of the IORP directive has brought forward many questions. One that both pension funds and their advisers raise is: “What is the cost of risk management?” But isn’t there an even better question to ask: “What is the cost of not managing risks?”»