The Risk-Wise Investor: How to Better Understand and Manage Risk

Financial markets, and investing itself, have changed dramatically over the last few years. Historic changes have created incredible new investment opportunities as well as unsettling new challenges—increasing the potential impact of familiar old risks and the likelihood of totally new ones. With changes to the investment landscape continuing to occur more frequently, understanding and managing risk is now more important than ever.

Written in a straightforward and accessible style, The Risk-Wise Investor: How to Better Understand and Manage Risk (Wiley; September 2009; 9780470478837) by Michael Carpenter is specifically designed to help you build a strong, knowledge-based understanding of risk and risk management.  It opens by reviewing our everyday life risk management process and then quickly reveals how to apply those same basic principles and well honed life risk management skills in better understanding and managing investment risks.

Page by page, this reliable resource skillfully outlines the “Risk-Wise” investment process—from properly identifying, understanding, and prioritizing risks to  selecting  risk reduction/management strategies  and evaluating risk/reward tradeoffs— all the way to showing you how to develop and implement  –your own personalized action plan. Along the way, you’ll discover exactly what it takes to become a more effective “Risk-Wise” investor by:

• Using an empowering new definition of risk to improve your investment endeavors
• Converting risks into “inconveniences,” and even potential opportunities 
• Understanding your “risk biology”
• Focusing your risk management attention and resources in the right places
• Knowing which risks to avoid, and which to accept and/or manage
• Navigating extraordinary crisis events, bear markets, frightening volatility, and the extremes of business cycles

With The Risk-Wise Investor as your guide, you'll be better prepared to manage common decision making and perception risks, as well as those risks that occur in roaring bull markets, frightening bear markets, and even uncertain market environments. But most of all, you’ll enjoy the peace of mind that comes from gaining a critical understanding of what it takes to  be ready before  financial risks becomes a reality.