Risk Management

The introductory sentence, « Risk management is key to securing and sustaining our clients’investments, » underscores the paramount importance that GB Investment Holding SA places on risk management. It’s not merely a formality but a central element of their value proposition, aimed at ensuring the sustainability and security of their clients’ assets.

The phrase « Through ongoing analysis and tailored strategies » reveals a proactive and individualized approach.

• Ongoing Analysis: This implies continuous monitoring of the economic, financial, and operational environment. This vigilance allows for the identification of potential risks as soon as they emerge and for anticipating developments likely to impact clients’ investments. This analysis may rely on sophisticated tools, predictive models, and the expertise of specialized analysts.
• Tailored Strategies: Recognizing that each client has unique objectives, risk tolerance, and financial situations, GB Investment Holding SA does not simply apply a standardized approach. They develop customized risk management strategies adapted to the specific needs of each client. This may involve different risk mitigation techniques depending on the investor’s profile and the nature of the investments.

The description then details the fundamental process of risk management:

• Risk Identification: The first crucial step involves comprehensively identifying the various categories of risks to which investments are exposed. GB Investment Holding SA specifically mentions three types of risks:

  • Financial Risks: These encompass risks related to fluctuations in financial markets (volatility in the prices of stocks, bonds, commodities, currencies), credit risk (default of an issuer), liquidity risk (difficulty in selling an asset quickly without significant loss), and interest rate risks.
  • Operational Risks: These risks are related to GB Investment Holding SA’s internal processes, IT systems, human errors, fraud, or unforeseen external events (natural disasters, pandemics) that could impact investment management.
  • Market Risks: These risks are related to macroeconomic factors and general market conditions, such as inflation, economic growth, monetary policies, geopolitical events, and regulatory changes.

• Risk Control: Once risks are identified, GB Investment Holding SA puts in place mechanisms and procedures to control them. This may include portfolio diversification (not putting all your eggs in one basket), setting exposure limits to certain assets or sectors, using hedging instruments (such as options or futures contracts), and implementing strict internal controls to prevent errors and fraud.

• Risk Minimization: The ultimate goal is to reduce the potential impact of risks on clients’ investments. By implementing effective control strategies, GBI-Holdingsa.com seeks to limit potential losses and preserve their clients’ capital.

The last part of the description highlights the tangible results of this risk management approach:

• Protecting their Capital: The primary objective is to safeguard the capital invested by clients against significant losses due to adverse events. Rigorous risk management is essential to prevent the erosion of wealth.
• Ensuring Stable Long-Term Performance: By minimizing risks and avoiding significant losses, GBI-Holdingsa.com aims to provide its clients with more stable and predictable long-term performance. This does not necessarily mean an absence of volatility, but rather a limitation of extreme fluctuations and a gradual growth of capital.