By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
NationalViewsNationalViewsNationalViews
Notification Show More
Font ResizerAa
  • Society
    • India
    • Women
    • Religion
  • Politics
    • Geopolitics
    • International
    • Narendra Modi
    • Corruption
  • Business & Finance Views
    • Business
    • Finance
    • Technology
    • Trading
    • Real Estate
    • Stock Market
  • Jobs & Career
  • Entertainment
    • Bollywood
    • TV Serials
  • Lifestyle
    • Health
    • Fashion
    • Travel
    • Food & Drinks
    • Review
  • Web Stories
  • E-Magazine
    • January 2025
Reading: How to Get it Right with Your Investment Planning Options
Share
Font ResizerAa
NationalViewsNationalViews
  • Society
  • Politics
  • Business & Finance Views
  • Jobs & Career
  • Entertainment
  • Lifestyle
  • Web Stories
  • E-Magazine
Search
  • Society
    • India
    • Women
    • Religion
  • Politics
    • Geopolitics
    • International
    • Narendra Modi
    • Corruption
  • Business & Finance Views
    • Business
    • Finance
    • Technology
    • Trading
    • Real Estate
    • Stock Market
  • Jobs & Career
  • Entertainment
    • Bollywood
    • TV Serials
  • Lifestyle
    • Health
    • Fashion
    • Travel
    • Food & Drinks
    • Review
  • Web Stories
  • E-Magazine
    • January 2025
Have an existing account? Sign In
Follow US
Business & Finance Views

How to Get it Right with Your Investment Planning Options

Deepti Verma
Last updated: July 2, 2019 6:34 pm
Deepti Verma Published July 2, 2019
Share
SHARE

Staying ahead in the world of finance is essential to the very existence of your business. For any investments to yield returns some processes need to be in place. Also, strategies must be set, and executed at specific times.

Contents
5 Key Steps to Managing Risks1.    Identification2.    Analysis3.    Evaluation4.    Solution5.    Monitoring and ReviewBottom Line

From buying low-risk bonds, to hedging currency exposures with currency derivatives and other forms of financial securities, taking risks in the financial world is equivalent to breathing in oxygen.

To most investors, the problem with taking necessary risks lies in not being armed with the knowledge of likely outcomes and how things may look at the other side of the distribution curve.

Being able to measure deviations from expected outcomes, and how to cope with these deviations is what Carson Wealth does best. Risk Management is the practice of identifying risks, analysing them, and, putting strategies in place to reduce them.

Besides, you have no choice, because from the moment you make an investment decision, you expose yourself to risks, such as high inflation, recession, bankruptcy, volatility in capital markets, amongst others.

5 Key Steps to Managing Risks

Risk Management is a process and it requires that you take practical steps. Basically there are five key steps to managing risks.

1.    Identification

In this case ignorance is not bliss. Identifying possible risks and blocking them is very important to being on top of your game. In any business environment, there are more than a handful of risks you can encounter in a financial operating system.

Examples of investment risks are; legal risks, market risks, regulatory risks, and even environmental risks. After you have gotten this information and identified potential risks, you need to document them. Some companies have a manual system, but it is better to have tools that can map out and process the information.

2.    Analysis

The next step is analysing the risk. You need to know the extent and scope of the potential risks to be able to effectively manage it. Analysing the risk helps to determine its consequences and how it can affect your investments goals.

3.    Evaluation

Now, you move on to evaluating and prioritizing the risk. You need to rank the risks to know the most severe and least impactful one. Evaluation gives you a view of which risk requires immediate attention and the ones that do not.

4.    Solution

After you have evaluated the risks you need to eliminate or contain them. This may take some time because you need to contact relevant experts and stakeholders. Sometimes, it is better to talk to a professional financial management team. For instance, Carson Wealth has a team of experts, and a system in place to manage risks effectively.

5.    Monitoring and Review

While it is near impossible to completely remove all potential risks, you can always create a way to monitor and review them. In this case, you need to have a monitoring system. Keeping a constant watch is very important in making things work.

Bottom Line

With these key steps, you can get it right with your investment planning options. Having the right contingency plan gives you an edge over unforeseen outcomes and uncertainties. It is possible to emerge winner, but only if you plan smart. 

You Might Also Like

How to Evaluate the Best Term Insurance Plans Based on Your Needs?

Now Know all about RBI MPC Meet Updates April 2025

Adani Enters the Cables and Wires Industry – Is This the Next Big Boom in the Segment?

Know How Steel Import Tariff Can Benefit the Indian Steel Sector

New Deal Between Elon Musk, Reliance, and Airtel – What Are the Details?

TAGGED:FinanceInsuranceTrading
Share This Article
Facebook Twitter Email Print
Leave a comment
© National Views. All Rights Reserved.
Welcome Back!

Sign in to your account

Lost your password?