What does the term "Risk-Wise" mean?
"Risk-Wise"® is the trademarked term we at "Risk-Wise"® originated to describe both the innate & acquired ability to judge risk/reward decisions most correctly....
1.) Following the soundest decision making process and course of action, based on...
2.) Broad knowledge, deep understanding, and real world experience (both our own, and what we can learn from others) in dealing with the relevant factors that need to be considered in each case, and
3.) Thoroughly preparing for risk(s) in advance.
These simple, nontechnical attributes are the foundation of the entire "Risk-Wise"® method.
They're also the very same factors that have helped all of us effectively manage the "real-life" risks we face every single day.
In fact, the more we know and understand about anything we deal with, the less fear, better decisions & fewer missteps we'll experience, and more successful we'll be.
Does The "Risk-Wise"® Method interfere with risk management methods or tools I may already be using?
No! In fact, it's the exact opposite.
Using The "Risk-Wise"® approach actually enhances the use and effectiveness of any risk management initiatives, methods or tools you may already be using.
The "Risk-Wise"® Risk Management Planning process is conducted in conjunction with, or even before, the financial planning process & investment policy statement completion. As a result, it complements and enhances the effectiveness of any portfolio level risk management tools, strategies or methodologies that may be planned or that are already in use.
The benefits of using The "Risk-Wise"® Risk Management Planning Process are that, once completed, it ensures each individual client:
1.) Understands what "Risk" actually is, and how it works in the "real world."
2.) Identify and prioritize the full range of both external & internal risks they face
3.) Better understand the advantages and disadvantages of the risk management priorities and options they're considering
4.) Ensure those factors are fully & consistently integrated into each step of the investment process, including creating their:
- Financial plan and/or Investment policy statement
- Asset allocation plan
- Portfolio construction, and implementation
- Ongoing risk/reward decision making and monitoring processes.
Working together, these elements help clients and their advisors more effectively address and manage the full range of external and internal risks they face, in a well thought out and consistent way at each level of the process
No other previous or current method has ever addressed every step, and each level (Advisor Level, Client Level, and Portfolio Level) of the critical risk management planning process, as well as The "Risk-Wise"® Method.
Doing so, helps clients understand what their doing & why, and minimizes common miscommunications and misunderstanding risks between clients, advisors, and the portfolios they build. It also creates more knowledgeable, realistic, and less emotional investors, while enhancing the likelihood of each client achieving their long-term objectives.
Is the "Risk-Wise"® method useful beyond investing?
An enormous benefit and advantage of the "Risk-Wise"® method is its ability be used in better managing virtually any type of risk, including investing.
In fact, its the very same process we humans use in successfully managing the "everyday Life-Risks" we face so successfully. Although we've become so comfortable with it that its hard to describe, because we've almost fully internalized the process, and usually just use it automatically.
In addition, the steps involved in the "Risk-Wise"® method are virtually identical to the risk management steps used throughout:
1. The worldwide commercial airline industry, that make it the safest form of transportation known to man.
2. All branches of the armed services,
3. Police & public safety professionals,
4. Fire fighters
5. Physicians, and the entire healthcare field
6. Manned & unmanned space flight
7. Merchant shipping, diving
All these professional fields and the activities all deal with serious life threatening risks almost constantly. For them risk management isn't just an academic exercise, its deeply integrated into every single thing they do.
That very fact should give a great deal of confidence to anyone who's considering using the "Risk-Wise" method in their personal investing & retirement planning, as well as their businesses, career, and family activities.