RISK, a word with a zillion meanings attached to it
But, put simply…. It’s what I can eat & digest without leading to any complications within my body
Aah, but never as simple as it, because – what’s good or not so good for my consumption, I have NO IDEA ?
The western concept has made a mockery of Risk from a personal financial perspective. Creating grids & buckets for categorising oneself into a Risk framework is the most Worthless & Useless exercise in life At best, it’s a shallow & hollow reflection of my mindset at that particular time ??♂️
If I need to assess my Risk on Money Matters & Investing, I need to check some of the below basic parameters for myself (I can write hundreds of questions to ask myself, though)
What’s my Earning
What’s my Spend
How much of Cash I hold
How much of Savings / Investments do I hold
What’s my Liquidity Quotient
How stable is my job / career
What’s my lifestyle looking as
What’s probably going to hit me or not hit me (never a guess)
What’s been my past on money
What culture of money that i have grown up in (very imp)
What’s my experience with Money
and on and on…..
Bottomline
READ & Assess your “Internal Risk Document” carefully
RISK Calculation is subjected to Qualitative & Quantitative biases
?
It is a true risk analysis ?