"Investors may look at individual risks and conclude that they are low probability events. The trouble is that a lot of those [big, geopolitical risks] are interconnected, and some of them are rather existential in terms of Europe, so they are considered to be low probability events.
"But I would say that a lot of the risks have been managed, but they haven't been solved. Whether it's Ukraine, the Balkans, or the Middle East, or the Shia/Suuni conflict, or North Korea, or many other issues we can think of. My personal view is that we may be underestimating the tail risk of these events occurring."
Former US Ambassador to the EU Anthony Gardner sat down with FundForum Correspondent Emma Walden at FundForum International to discuss geopolitical risk in investment decisions.