RISK MANAGEMENT IN INVESTMENT DECISIONS

P. Kannaiah Dr. B. Madhusudhan Reddy Dr. A. Jyothi

Abstract


Risk management is an important part of planning for investment. The process of risk management is designed to reduce or eliminate the risk of certain kinds of events happening or having an impact on the investment. The earliest Risk Management techniques optimized profitability or financial returns using heuristic or mathematical models. However, this approach paid little attention to balance or aligning the Risk to the organization's strategy. This section provides an introduction to the principles of risk management. Certain aspects of many of the risk management standards have come under criticism for having no measurable improvement on risk, whether the confidence in estimates and decisions seem to increase.

Keywords: Risk, Return, Variance, Standard deviation, Optimization, prioritizing.


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References


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