Risk Management

Risk Management

We are risk aware investors, not risk averse ones. Risk and reward go hand in hand in our thought process.

Making correct market calls, picking of stocks, bonds, funds, deciding asset allocations and timing market moves, is both exciting and necessary, but building the right implementation and risk management framework is the determining phase in ensuring that wealth is preserved, grown and transmitted to the next generations.

Risks can come from uncertainty in financial markets, project failures, legal liabilities, credit risk, accidents, natural causes and disasters, as well as from deliberate attack from an adversary, or events of uncertain or unpredictable cause. Strategies to manage risk typically include transferring the risk to another party, avoiding the risk, reducing the negative effect or probability of the risk, or even accepting some or all of the potential consequences of a particular risk.

Risk management is the identification, assessment, and prioritization of risks followed by coordinated application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events. These processes are the hallmark of professional money management.

< Previous | Next >