KEY RISK MANAGEMENT METHODS
🤜ACCEPTANCE : Deciding to take on the risk of investing in an asset but not spending money to avoid it as the potential loss isn't significant.
🤜TRANSFERENCE : Transferring the risk of an investment to a third party at a cost.
🤜AVOIDANCE : Not investing in an asset with potential risk.
🤜REDUCTION : Reducing the financial consequences of a risky investment by diversifying across your portfolio. This could be within the same asset class or even across industries and assets.
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