Risk Assessment Holds The Key

Risks exist in every single aspect of our lives. Yet, it cannot be easily expressed, because it means different things to different people. That is why, when evaluating what the risk of a particular asset allocation or an investment product is, one must view it in a very specific context and how it fits in with one’s life and personality. I list down three stories that will drive home my point. The right experience matters I can never forget the narration of Jason Apollo Voss, chief executive officer of the US-based firm Deception And Truth Analysis Inc. Years ago, his daughter went on a week-long river rafting and camping trip. This was the scheduled annual trip organised by her school, so it was not exceptional. However, there was heavy snowfall the previous winter, and so, the river was swollen with fast rapids. Worse, the forecast for that week had predicted heavy snowfall and...