Institutional risk management practices in regard to investing have barely changed since the 2008 financial collapse and are in need of a serious overhaul, a survey indicates.

Allianz Global Investors' survey of 755 institutional investors found that before the global financial meltdown investors' top three strategies were diversification by asset class and geography or duration management.

And, though 62% of the respondents said these strategies didn't provide enough protection, their use increased after the crisis.

“The lack of change in risk management strategies pre- and post-crisis is consistent across the globe,” the investment manager's report said, “underlining the need for an international review.”

So, two-thirds of institutions called for new strategies to help balance risk-return trade-offs, provide greater downside protection and replace traditional approaches to risk management.

Nearly half of the respondents in the study released last week said their company is willing to pay more to access better risk management strategies, and 54% say their organization has set aside additional resources to improve risk management.

Neil Dwane, global strategist AllianzGI, said in a statement that the results “show that a considerable number of investors do not show much confidence in their ability to manage risks effectively in both up and down markets.”

“Encouragingly” Mr. Dwane continued, “institutional investors do seem to recognize the need for more effective risk management solutions. However, it is time for asset managers to innovate and offer solutions and products that will help clients to navigate the low yield environment without exposing them to inappropriate levels of volatility.”

Two thirds of institutional investors claimed to have a good understanding of alternatives. However, fewer than that are allocating to these asset types, suggesting there is a slight disconnect between knowledge and investment.

Sixty percent said they measure the risks posed by alternative assets even as a third said they rely on external consultants to measure and manage these risks for them. Nearly 40% of investors said they do not have the necessary tools to assess the cash flow patterns or liquidity risk associated with alternative investments.

In light of the choppy markets at the start of this year, 77% of investors cited equity-market risk as the top threat to portfolio performance this year. Also high on the list of threats were interest rate risk, event risk and foreign-exchange risk.

Forty-two percent of the respondents said market volatility is their main investment concern. Add to that the other big concerns this year — low yields and uncertain monetary policy — and, AllianzGI said, “and there is little doubt that investors may be in for an even bumpier ride compared to the last few years.”

AllianzGI interviewed 755 institutional investors in 23 countries during the first quarter of 2016 for the study.