Risk and the Smart Investor / Edition 1

Risk and the Smart Investor / Edition 1

by David Martin
     
 

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ISBN-10: 0071743499

ISBN-13: 9780071743495

Pub. Date: 08/19/2010

Publisher: McGraw-Hill Professional Publishing

In Risk and the Smart Investor, leading risk management expert David X Martin helps you alter the way you think about risk in order to avoid the most common financial mistakes. You'll learn to:

Measure Your Performance against Benchmarks

Avoid Overreliance on Statistics and Historical Trends

Quantify Your Situation

Question Your Hidden

Overview

In Risk and the Smart Investor, leading risk management expert David X Martin helps you alter the way you think about risk in order to avoid the most common financial mistakes. You'll learn to:

Measure Your Performance against Benchmarks

Avoid Overreliance on Statistics and Historical Trends

Quantify Your Situation

Question Your Hidden Assumptions

Perform Due Diligence before making any Decision

Recognize Tipping Points and Incremental Trends

Visualize Different Outcomes

Product Details

ISBN-13:
9780071743495
Publisher:
McGraw-Hill Professional Publishing
Publication date:
08/19/2010
Pages:
288
Product dimensions:
6.00(w) x 9.10(h) x 1.20(d)

Table of Contents

Introduction v

Part 1 Assessment

Risk Principle 1 Know Where You Are 3

An honest assessment of your current position is necessary to set goals and manage risk

Risk Principle 2 Know What You Don't Know 19

Understand the limits of your own knowledge, and question the assumptions of others

Part 2 The Rules Of The Game

Risk Principle 3 Determine Your Appetite for Risk 41

Determine how much risk you will accept in light of your goals

Risk Principle 4 Demand Transparency 57

Risk should be fully understood and discussed openly

Risk Principle 5 Diversify 75

Multiple risks will produce more consistent results

Risk Principle 6 Checks and Balances 95

Verify the existence of both individual and institutional checks and balances

Risk Principle 7 Hard Work 115

Risk management never ends

Part 3 Decision Making

Risk Principle 8 Consider All the Alternatives 135

Always leave yourself an exit strategy

Risk Principle 9 Risk is Everyone's Responsibility in the Decision-Making Process 157

Ensure that risk is managed at every step in the process

Risk Principle 10 The Importance of Reputation 175

Carefully investigate the reputation of everyone with whom you do business

Risk Principle 11 Fit Your Decision Making into Specific Time Frames 189

Reconsider your decisions as your goals change

Part 4 Reevaluation

Risk Principle 12 Monitor Outcomes Continuously 209

If you are unsure, ask

Risk Principle 13 Identify and Learn from Your Mistakes 223

Acknowledging your mistakes leads to better decision making

Conclusion

Risk Principle 14 Enduring Principles and Perpetual Process 241

Principles, process, and preparation

Index 253

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