PT - JOURNAL ARTICLE AU - Ananth N Madhavan AU - Jian Yang TI - Practical Risk Analysis AID - 10.3905/jpm.2003.319921 DP - 2003 Oct 31 TA - The Journal of Portfolio Management PG - 73--85 VI - 30 IP - 1 4099 - https://pm-research.com/content/30/1/73.short 4100 - https://pm-research.com/content/30/1/73.full AB - Once a fairly esoteric subject, risk analysis and measurement has become a critical function for both portfolio managers and traders. Yet accurate measurement and analysis of risk presents many practical challenges, including the choice of risk model, portfolio optimization pitfalls, horizon mismatches, and out-of-sample testing. This detailed overview of recent developments in risk analysis and modeling focuses on practical applications. While risk management tools can provide invaluable insights as to portfolio risk, they must be applied with considerable care. Risk analysis, as it stands today, is as much an art as a science.