• This article offers an in-depth explanation of the IRISK index developed by FlexFunds based on the findings of the III Annual Report of the Asset Securitization Sector 2025-2026.
• The information is aimed at asset managers who want to understand the current state of the industry and identify which areas must be improved in order to anticipate and adapt to future contexts.
• FlexFunds offers an asset securitization program that enhances the liquidity of different types of investments. For more information, please do not hesitate to contact our experts.

In an increasingly volatile financial environment, asset managers face a historic challenge: they must not only maximize risk-adjusted returns but also demonstrate strategic adaptability in the face ofamid constant disruptions.

It is in this context that FlexFunds introduces the IRISK index (Investment Risk Insight and Strategy Knowledge), a tool designed to measure the maturity and resilience of the investment ecosystem, transforming the way the preparedness of industry professionals is assessed.

From measuring risk to assessing capabilities

Traditionally, benchmarks in asset management have focused on financial performance metrics such as returns, volatility, beta, or tracking error. While these tools provide valuable information about a manager’s historical performance, they fall short in capturing a critical dimension: the manager’s ability to anticipate and adapt to future market contexts. 

To address this limitation, the IRISK index was created, specifically designed to complement traditional metrics by incorporating an assessment of a manager’s readiness to navigate changing and complex market scenarios.

In the words of Dr. Juan Carlos Higueras, economist and corporate finance specialist, the IRISK Index is “a strategic compass that measures managers’ preparedness to lead in an environment of complex risks, anticipating disruptions and building long-term resilience.”

The essential difference compared to other indices lies in its forward-looking nature: it does not limit itself to evaluating past exposures but captures managers’ perceptions, attitudes, and capabilities to respond to structural risks. This provides a more transversal, strategic, and dynamic reading of the industry.

A score with strategic implications

Specifically, the III Annual Report of the Asset Securitization Sector 2025–2026, produced by FlexFunds in collaboration with Funds Society, assigns the IRISK Index a value of 65/100.

This result, although positive, reflects an intermediate level of preparedness—sufficient to navigate an uncertain environment, yet with a clear margin for improvement.

The score synthesizes four key dimensions shaping asset management today:

• Economic–regulatory environment: macroeconomic volatility, inflation, interest rates, and monetary policies, along with regulatory pressure stemming from MiFID II, SFDR, or Dodd-Frank.
• Digital transformation: adoption of disruptive technologies such as artificial intelligence (AI), big data, blockchain, and automation—tools that redefine both asset management and exposure to cyber-risks.
• Diversification: the need to expand into alternative, thematic, or geographical assets in a world where traditional correlations have lost their effectiveness as a protection tool.
• ESG (environmental, social, and governance): integration of sustainability criteria that are no longer optional, but a requirement from regulators, institutional investors, and clients.

The report shows that macroeconomic uncertainty and risks in emerging markets were rated above 8/10, while ESG criteria barely reached 4.5/10, revealing low integration across many asset managers, particularly in Latin America.

This contrast suggests that although the sector acknowledges the importance of sustainability, it still views it as an emerging factor rather than a consolidated strategic pillar.

Methodology and scope

It is important to note that the IRISK Index is not an arbitrary metric; it is the result of a rigorous statistical process based on surveys conducted among portfolio managers in more than 19 countries, predominantly in Latin America (71% of the sample).

The responses were analyzed using factorial techniques, which made it possible to identify the critical dimensions of the industry.

The added value of the index lies not only in its numerical score but also in its ability to diagnose vulnerabilities and prioritize resources.

For example, a manager with a low score in digital transformation may identify the need to invest in technology and training, while one with shortcomings in ESG will understand the need to strengthen their sustainability strategy to meet regulatory and client expectations.

The risk of not being prepared

Ultimately, the true contribution of the IRISK index is conceptual. It redefines risk as the absence of internal preparedness to address challenges. In Higueras’ words, “the risk of not being prepared has become one of the greatest risks in the asset management industry.”

This has deep implications. Financial institutions can no longer afford to merely react to changes—they must anticipate them, develop organizational capabilities, and demonstrate adaptive leadership.

This is why the index functions as a strategic benchmark for the industry: it measures not so much “what happened” as “how ready you are for what is coming.”

IRISK as a competitive advantage

Beyond its academic or analytical utility, the IRISK index can become a competitive differentiation factor.

Managers who achieve high scores will be better positioned to attract capital, strengthen the trust of institutional clients, and demonstrate to regulators that their management model is solid and sustainable.

In addition, the ability to show progress across each dimension can serve as a marketing and reputational asset in a market where trust has become increasingly scarce.

In this regard, the IRISK index is not only a management metric but also an instrument of legitimacy within the financial industry.To learn more about the asset management industry and the IRISK Index, you can download the III Annual Report of the Asset Securitization Sector 2025–2026 for free, produced by FlexFunds in collaboration with Funds Society.