Assessing and managing financial risk is one of the cornerstones of investing and financial planning. Taking sufficient risk is necessary to grow one’s wealth. However, taking too much risk can lead to financial ruin. The key to increase the probability of financial success is identifying the risk within your financial strategy and taking the proper steps toward managing it.
With the confluence of economic challenges this year, including inflation soaring, interest rates rising, stocks plummeting, bonds dropping and geopolitical unrest, it is an opportune time to reassess the risk within your own portfolio and your ability to take risk. Here are 10 considerations when thinking about risk management:
Original article: https://www.kiplinger.com/investing/managing-financial-risk-in-market-downturns
