Risk Management
The management of risk is essential to the investment process, no matter how complex or diverse your portfolio is. It is important to have a coordinated plan in place to deal with adverse market conditions.
This is where Kimura Financial incorporates various strategies of risk management for our clients’; we aim to tailor each client with the necessary risk in ratio to return. At Kimura Financial we have teams that are solely responsible for managing risks on investments, they continuously monitor and control.
Understanding Risk v Reward
Lesser levels of risk are generally associated with low returns. Higher levels of risk are associated with higher reward potential.
For example, expected gains of common stock are higher than “risk-free” government bonds, but the return on this is more volatile. Because there is a trade off between risk and reward; your tolerance is dependent on your growth expectations on a portfolio. By having certain risks you can expect to achieve returns based on the risk, to have reasonable growth you cannot eliminate risk altogether. However the goal is to have equilibrium where you can have reasonable profits with enough reassurance that your investment is safe.
Back To Top