David Garnier of Dartmouth, Nova Scotia, is an experienced financial
professional working with CIBC (Canadian Imperial Bank of Commerce) Wood
Gundy. Professionals like Dartmouth, Nova Scotia’s David Garnier are
often skilled in risk management, which is the process of assessing
financial risks and minimizing their potential impact.
Without years of experience and a specialized education, most investors are unable to perform proper risk management on their financial portfolios. The tips below are just some of many that investors receive when they enlist professional aid:
Without years of experience and a specialized education, most investors are unable to perform proper risk management on their financial portfolios. The tips below are just some of many that investors receive when they enlist professional aid:
- Define Before Beginning – It seems obvious, but defining your goals, risk tolerances and risk assessment frequency before you begin investing will keep you safe. Spend time developing a plan to minimize your risk so that you have a sound structure to follow once you’re investing. This will prevent chancy behaviors like performance chasing.
- Group Your Assets – Though it isn’t always possible, you should group your assets where you can for easier management. The fewer asset groups you work with, the easier it is to manage your risk. This isn’t easy in a diversified financial portfolio, but keeping the rule in mind can aid you in risk management regardless.
- Allow for Evolution – Your first-round risk assessment isn’t going to reflect what you know and do as you gain more experience. As your investing evolves, so must your risk management strategy.
