Risk: How to Manage It

We all face risk in whatever we do. Whether you are building your own business, saving and investing for the future, or just working your job and hoping you can keep it. It is all about risk. 

Risk can be low and can be high, but it also can be serious and not serious. If I invest $100 and lose it I can sustain that loss. It is not that much to lose. If I invest $100,000 and lose it that is a lot to lose. That is a measurement of the magnitude of risk, how much I risk losing (or gaining). 

The other side of risk is the level of risk itself, how likely is it that I will lose or win? Most people are not willing to take a big chance (high risk magnitude) on a large amount of assets because the cost is too high if it goes wrong. So they are tempted to invest in the “safest” things they can find. That is especially true if they have been burned before. 


Wishing you success and prosperity,

Daniel R. Murphy
Helping People Learn to Build Wealth

Wishing you well,

Daniel R. Murphy
Educating people for building wealth, adapting to a changing future and personal development.