What does the term "Risk-Wise"® really 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...Following the soundest decision making process and course of action, based on...
1.) 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
2.) 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 the more successful we'll be.
Does the "Risk-Wise"® Method interfere with or compromise 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.
Using this well thought out and consistent approach at each level of the process, simplifies and enhances the risk management process.
No other previous or current method addresses every step, and each level ( Advisor Level, Client Level, and Portfolio Level ) of the critical risk management planning process, in as well as The "Risk-Wise"® Method.
Doing so, helps advisors and clients understand what they are doing & why.
It minimizes common miscommunication 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.
For an extensive listing of additional risk & risk management questions & answers...
Please use the link below to access Mike Carpenter's responses to "over 30 risk related questions at: www.Quora.com