Risk is changing. Higher rates, shifting correlations and a more uncertain macro backdrop are challenging traditional assumptions about portfolio construction and how investors navigate volatility.

At Citywire’s ‘Rethinking risk in a volatile world’ roundtable, held in association with BNY Investments, advisers and investment professionals explored how the definition of risk is evolving and why resilience is becoming increasingly important.

Bhavin Shah, lead portfolio manager of the FutureLegacy range at BNY Investments, highlighted the challenge of navigating a market environment where traditional sources of policy support have become more constrained.

‘Uncertainties always own markets, and when we look back in hindsight, it’s always obvious,’ he said. ‘The difference this time is that monetary policy and the ability to support markets through monetary policy have clearly reached their limitations.’

‘When you think about market concentration, correlations and the high levels of interconnectedness within markets, building resilience to stay invested through that journey is a really important part of that.’

The discussion also explored how advisers are helping clients think differently about risk, moving beyond portfolio labels and volatility measures to consider the purpose of different investments, the risks they are taking and whether portfolios are built to deliver the outcomes clients need.

Watch highlights from the discussion with:

• Bhavin Shah, lead portfolio manager of the FutureLegacy range, BNY Investments

• Charlotte Watson, chief investment officer, Attivo Investments

• Dharmendra Vekaria, fund analyst, Alka Financial Services

• Vanessa Barnes, founder and managing partner, Hannay Wealth

• Zuzana Bundova, independent financial adviser, Barnes & Sherwood Professional Advisers