The title says it all.
Despite looking at the wikipedia page, I’m still left feeling like I missed something. It seems like investment companies are pointless, but I know little about their actual day-to-day functions.
For example: “enterprise risk management” is listed as one of BlackRock’s specialties; as a working-class layman, this is hard to make any connections to. Is this just funding? Do they perform any duties similar to a bank?
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Well, if you take your money into Goldman, and you tell them “I’d like you to manage my assets,” they put your money into a brokerage account and do stock trading actions in line with how much risk you’d like to take and how much money you’d like to make. It’s kind of like a 401k but with a personal lapdog who you can call up and complain to about recent transactions (your broker).
The enterprise risk management part of your question is something I’m less familiar with, but general “risk management” is basically applied statistics and economics wherein actuaries calculate how much “risk” (how much money you can lose) is inherent in your business and then give recommendations on how to reduce this risk.
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