Converting systemic risks into sustainable returns for investors – ArabianBusiness.com

Converting systemic risks into sustainable returns for investors – ArabianBusiness.com

The coronavirus pandemic has served as a wake-up call for many institutional investors, emphasising the importance of considering the addressing global systematic risks within both their own organisations and their portfolios. With that, many institutional investors are looking beyond just traditional risks and return factors within portfolios.

The need for a unified approach to mitigate risks and meet the demand for growing environmental, social and governance (ESG) standards has never been more evident, shares Tarek Lotfy, Mercer CEO, UAE and IMETA, in an interview with Arabian Business.

These systemic risks, which are centred around ESG, have always existed, according to Lotfy.
“The relatively new aspect of this is how you incorporate, or how you integrate, the systemic risks into your strategy and thinking.”