The document discusses risk and entrepreneurship. It describes how commercial journeys in the Middle Ages involved great risk but potential reward. The author's personal journey included careers in engineering and finance, leading to co-founding a company called d1g1t that provides risk management tools for wealth advisors. The company aims to help advisors better manage risks for clients and demonstrate the value of their advice. The author believes entrepreneurs are risk-takers but that risk-taking involves assessment and management rather than gambling.

1. It’s All About Risk:
A Personal Journey Through Financial Engineering,
Innovation & Entrepreneurship
Dr. Dan Rosen, CEO & Co-Founder, d1g1t

2. It’s all about
Risk...

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Back in the Middle Ages
Commercial journeys
fraught with
… but potential for
untold riches

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Risicare
Early Italian word Risicare ‘to dare’
describes the act of undertaking such an adventure with
two possible outcomes:

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“Risk is a choice, rather than a fate.”
“The actions we dare to take, which
depend on how free we are to make
choices, are what the story of risk is all
about. And that story helps define what it
means to be a human being.”

6. © 2019 d1g1t Inc. All rights reserved. 6Confidential & Proprietary
No risk
→ No reward
→ No innovation
→ No success
Risk is a Choice Rather Than a Fate

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Risk Management
Maximizing the areas where we have some control
while minimizing the areas where we have no control over the outcome
Risk is a Choice Rather Than a Fate

8. © 2019 d1g1t Inc. All rights reserved. 8Confidential & Proprietary
Let’s Start with Some Personal History
Chemical
Engineer
Mechanical
Engineer
Industrial
Engineer
Software
Engineer
Financial
Engineer
‘Quant’

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So What Exactly is a ‘Quant’?

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Google Image Search for ‘Quant’
“Not quants”

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Engineering → Financial Engineering
Engineering takes math & the laws of physics
& applies them to real-world problems
• Civil Engineering: physics, laws of forces → builds bridges & roads
• Electrical Engineering: physics, laws of electromagnetism → make better or new electronics
• Aerospace engineering: physics, fluid mechanics, material science → build airplanes, spaceships

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Financial Engineering: It’s all About Risk
Financial engineering takes economics & math
(in particular breakthroughs in probability, stochastic calculus, statistical sciences)
& applies them to design financial systems/instruments
and to get a sense of their risks & returns

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Risk & Analytics: A Personal History

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Wealth Advisors Under Immense Pressure
• Complex markets: looming correction, lower returns & alpha,
talk of a recession
• Increasing client expectations and a ‘new’ client
• Mounting regulatory risks & exposures
• Fee compression

15. 1st enterprise wealth management platform
powered by institutional-grade analytics & risk management tools
that enables firms to
elevate the quality of advice & demonstrate its value to clients

16. © 2019 d1g1t Inc. All rights reserved. 16Confidential & Proprietary
Risk Appetite
& Capacity
Onboarding & KYC
Required Risk
Consumption
Personalized Goals
& Financial Plan
Risk Policy
Investment Mandates,
IPS, Accounts
Risk Taking
Investment Portfolios,
Construction
& Rebalancing
Risk Monitoring
& Management
Performance, Exposures,
Risk & Stress Scenarios
Manage
Clients
Manage
Portfolios
Manage the
Business
d1g1t
Advanced
Analytics
Enterprise Risk
Management
Enterprise Wealth Management Powered by Analytics

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Why d1g1t?
• Proven technology
• Proven track record
• Strongest financial engineering
team in the industry

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It’s All About the People
“First who … then what”
• It’s about the team: you can’t make it on your own
• It’s about talent: attract, nurture & retain
We sell software & technology…
but our clients really buy into our team

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http://cbreforward.com/d1g1t/

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Entrepreneurship: It’s all About Risk
Entrepreneurs are risk takers
Entrepreneurs love to compete
The essence of competition: uncertain outcomes
outcome
But risk taking is not the same as gambling
Risk assessment,
Risk management
& resilience are at the core

21. © 2019 d1g1t Inc. All rights reserved. 21Confidential & Proprietary
Back to the Journey…

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A More Realistic Representation

23. It’s all about
Risk...
Dare to… but manage

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understand the risks you take
… take the risks you measure

25. Dr. Dan Rosen
CEO/Co-Founder
dan.rosen@d1g1t.com
416-728-9519