RISK MANAGEMENT IN FINANCE

A common definition of risk is an uncertain event that if it occurs, can have a positive or negative effect on a project's goals. The potential for a risk to have a positive or negative effect is an important concept. Because, it is natural to fall into the trap of thinking that risks have inherently negative effects. If investor is also open to those risks that create positive opportunities, investor can make investment project smarter, streamlined and more profitable. Think of the adage. “Accept the inevitable and turn it to your advantage.” That is what investor do when investor mine project risks to create opportunities.