RiskMetrics

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The RiskMetrics variance model (also known as exponential smoother) was first established in 1989, when Sir Dennis Weatherstone, the new chairman of J.P. Morgan, asked for a daily report measuring and explaining the risks of his firm. Nearly four years later in 1992, J.P. Morgan launched the RiskMetrics methodology to the marketplace, making the substantive research and analysis that satisfied Sir Dennis Weatherstone's request freely available to all market participants.

In 1998, as client demand for the group's risk management expertise exceeded the firm's internal risk management resources, the Corporate Risk Management Department was spun off from J.P. Morgan as RiskMetrics Group with 23 founding employees. The RiskMetrics technical document was revised in 1996. In 2001, it was revised again in Return to RiskMetrics. In 2006, a new method for modeling risk factor returns was introduced (RM2006). On 25 January 2008, RiskMetrics Group listed on the New York Stock Exchange (NYSE: RISK). In June 2010, RiskMetrics was acquired by MSCI for $1.55 billion.^[1]