The Finance Professor: Manage Risk Like a Pro

Recently, I discussed the concept of risk. Now that you understand the main forms of risk that you might encounter, I want to take the discussion one step further and focus on risk management. Risk management is the process by which risk is identified, quantified, and controlled (as much as possible).

Get Organized and Identify Your Risks

Risk management starts by identifying the risks that are embedded in individual holdings and at the portfolio level. This starts by having a good accounting and organization system for your holdings. ...