
Re-think Risk Return Impact
While markets understand financial risk-return tradeoffs, the addition of impact outcomes to investing needs more sophisticated integration with these existing frameworks. Some of these challenges relate to historical assumptions of risk, return, outcomes, and governance from public, private, and philanthropic sector markets that have been adapted to date. Other challenges arise from overly-simplistic assumptions arising from an early impact investing mantra: "doing well by doing good". While much critical work has gone into impact measurement, new investment funds, and pioneering organizations, leaders still struggle with formulating clear objectives and making choices across the broad blended return spectrum. These challenges create basic communication obstacles to the efficient flow of resources and information across the ecosystem.