This is a Contributed Post
STRATEGIES FOR MANAGING PORTFOLIO RISK
There is no investment plan without a certain amount of risk. How much risk you are willing to cope with differs between investors. Typically, if you are considering an investment portfolio for the first time, you are likely to be cautious and have low-risk tolerance.
Seasoned investors and those who can afford to make a loss without affecting their financial stability have a high tolerance for risks.
But the real question you want to ask when it comes to managing portfolio risk is not how much risk one can safely handle but who determines the risks you face. Indeed, there will be a variety of risks on the way when you start building an investment portfolio. But being in a position to recognise these risks is not something that most new investors can do. So whose job is it to tell people about the risk of their investment portfolio? The answer varies depending on the type of portfolio you have and your attitude towards risks.
