Knowledge Centre

The Risk

If you are not in total control of an environment, you will be subject to the environment, when you are subject to something, you must protect yourself from what you are subject to as it is not in your control.

In capital market environment, aside from understanding your environment, you MUST cloth yourself with proper protection (proper layer of risk management), otherwise you will often find yourself naked in an unfavorable situation, unprotected and at the mercy of the condition of the environment;  proper risk management acts as insurance to protect our investments from adverse uncertainty, which can happen either due to inadequate assessment or victim of luck, proper risk management gives you choices, allows you to wait out a volatile market and buys you time, and time is the most expensive commodity for us non-perpetual beings.