When market participants talk about portfolio construction, recovery often isn’t part of the conversation, Ashby Monk, executive and research director at Stanford University’s Long-Term Investing Program, tells Aerial View. Traditional financial risk is concerned with drawdowns, volatility and variance, but not so much recovery, he adds. It’s part of a bigger problem with innovation at large financial institutions and it’s often easier to play it safe than to embrace risk, Monk explains. Monk also says that his research shows that really high ESG performers tend to recover more quickly from crises.