Risk Management Jan 17

The process of identification, analysis, and acceptance or mitigation of uncertainty in investment decisions

• Risk Management

• Risk Tolerance

• Risk Deviation

• Risk Development

Risk Management acts like an

• Insurance

• Investment

• Income

• Interest

One of the approaches to Risk Management

• Avoidance

• Selection

• Decision

• Deviation

This involves dividing your investments among different assets such as stocks, bonds, money market etc.

• Asset Allocation

• Asset Disposal

• Asset Accumulation

• Asset Selling

Realigning the weightings of assets to maintain asset allocation.

• Rebalancing

• Rebranding

• Reciprocation

• Recall

The difference between the real or fundamental value and the price you pay.

• Margin of safety

• Margin of hope

• Marginal analysis

• Marginal selection

The higher the risks the higher the

• returns

• debts

• losses

• assets

It is the spreading  of money in different investments to reduce risks.

• Diversification

• Accumulation

• Distinction

• Innovation

      Someone who will enter into an endeavor as long as a positive long run return on the money is possible, however unlikely.

• Risk Seeker

• Risk Tolerator

• Risk Advocates

• Risk Follower

             Buying assets at prices to your advantage and you own assets with a margin of safety.

• Valuation

• Dividend

• Profit margin

• Cash flow