Portfolio Risk Management

Portfolio risk management involves identifying, assessing, and mitigating potential losses in an investment portfolio. It aims to balance risk and reward by diversifying investments across various asset types, such as stocks, bonds, and real estate. By spreading investments, the impact of a poor-performing asset is reduced, while still pursuing overall growth. Tools like risk assessments, diversification strategies, and regular portfolio reviews help investors adjust to market changes and protect their assets, ultimately aiming for a stable return on investment while minimizing significant losses.