Every investment has some risk. Trying to figure out what risks your investments have, and how likely they are to happen, is risk management. Every investor should do risk management, but some don’t. Later, they often wish they had. In the late 2000s economic recession, the world economy almost collapsed because the risk management at some big banks wasn’t as good as they thought it was. Since then, most investors are paying a lot more attention to risk management.
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