Investing RISK

There are many ways to handle Risk in Investing. The standard risk management are: avoidance, acceptance, transferring, and reducing. Risk is always stick with returns where investors know that "the more return they receive, the higher risk they will face." From the concept of facing with Risk, investors should consider on their investment by:

• Setting up clear goal
• Setting up possible returns
• Understanding Risk in Investment
• Setting up Financial Planning and Reviewing periodically
• Setting up Retirement Plan
• And Risk Policies (team and management).

How much you understanding about Investing Risk ? 
The following video will let you know and capture some knowledge about investing risks with example of International Stocks and graph of Return defining level and possibility of Risk you might face (Risk and Returns):

1. Stock : Large Stock, small stock, preferred stock, common stocks
2. Bond : Government bond, long term, short term, company bond, ... etc.
3. Bills : Treasury bill, commercial papers, ...etc.

How to Handle Risk : Free ways 
The four step of handle risk is easy to understand as the following. We using standard management in avoiding, accepting, transferring, and reducing:

1. Risk Avoidance: avoiding any activities concerning to risk or willing to happen. For example, drunk drive causes traffic accident, then should not drive when drunk.
2. Risk Acceptance: accepting any risk that willing to happen and categorize them into group, types, small plot, and decide how to deal with it.
3. Risk Transferring: investors sometimes can transfer some risks to other agency to handle it (i.e. buying insurance, external auditors, outsourcing teams, ...) or might make the risk to other opportunities. 
4. Risk Reducing: Some risks are bigger and larger affecting investing, so they reduce them into small cap and decide how to fight it with it from a way of accepting, then transferring, avoiding, or dealing by themselves.

For more lessons click here !