The evolution of Risk 2.0

Risk has always been at the heart of investing—but today’s systemic shocks, regime shifts, and the rise of private markets are pushing traditional risk models to their limits. Investors need a new approach. 

In this episode we explore Risk 2.0—a broader, more adaptive way of managing risk that accounts for uncertainty, resilience, and long-term thinking. 

Joined by Jeff Chee, Global Head of Portfolio Strategy at WTW, and Lindsey Matthews, Chief Risk Officer at Universities Superannuation Scheme (USS), we unpack why the current risk paradigm is falling short, what’s holding investors back from adopting a more systemic approach, and how firms can evolve their risk management for the future. 

We moved to a broader set of metrics, the full dashboard of measures that you might want to use. This allows an integrated view of investment risks from the very short-term, like are we meeting cash payments, through to the long-term, such as, what could happen to the value of the scheme due to the climate transition or physical risks?

Lindsey Matthews, Chief Risk Officer, USS

 Why do we care about Risk 2.0 now more than we have in the past? I think it really is the rise of systemic risk—risks impacting all things, in all places, and the risk of the breakdown of the broader system in general. As well as feedback loops and tipping points, which are highly material but not captured by Risk 1.0.

Jeff Chee, Global Head of Portfolio Strategy, WTW

Related pages

Systems thinking content hub
Event: Systems curriculum
Paper: Pay now or pay later?

Event: Risk 2.0 | managing long-term risks in a short-term world
Short guide: The simple, and enlightening, story of systemic risk
Research paper: Systemic risk | deepening our understanding
Research paper: Systemic risk | adapting our practices
Workshop: Climate and systemic risk workshop