Managing Risk

Some might say we have an obsession with risk management. We’d have to agree. We believe it’s a key differentiator between firms that survive and thrive over the long run and those that don’t. At the D. E. Shaw group, our risk management capabilities have been tested by market cycles and crises over the course of more than three decades.

A central principle of our approach is that risk management and portfolio management are not separated: every one of us is a risk manager. We’re guided by our Risk Committee, which evaluates risk in various dimensions and manages the allocation of capital among our strategies.

Our Risk Committee is made up of:

Read some of our thinking about risk management in “Lessons from the Woodshop” and “Diversification and Beyond” in our Library section.