New England Investment and Retirement Group holds extensive experience in risk management services for a wide range of clientele.
What is Risk Management?
As the name suggests, risk management is the process of managing financial risk to minimize potential losses. It involves the careful forecasting and evaluation of potential financial risks. This is based on the premise that there is a level of risk inherent in every type of financial investment. The aim for New England Investment and Retirement Group is therefore to mitigate this risk without eliminating any potential returns.
In the world of financial investment, there is always a trade-off between risk and return. The greater the potential return, the greater the financial risk involved. This is why assets such as stocks are regarded as high risk – the potential return is normally greater than the return on assets such as deposit accounts or bonds. But the trade-off is that the risk of loss is also greater. Risk management is necessary for this reason. With our strategic risk management services, New England Investment and Retirement Group will help you strike a balance between potential risk and potential return. While you want to make good returns, you also don’t want to risk too much.
The first step in risk management is usually the identification of potential financial risks. This may involve making an assessment of the riskiness associated with the holding of certain types of financial assets versus others. It may also involve identifying government policies or potential economic conditions that may impact the riskiness of certain investments.
For example, as a result of the recent presidential elections, many risk managers have opted to invest more heavily in commodities rather than equities. This is because they may foresee a negative impact upon equities due to uncertainty and a relatively more positive impact on commodities such as gold. Whatever, the case, risk management is an essential part of any viable financial plan. It is always better to be safe than sorry.
If you are interested in learning more about our risk management services, contact New England Investment and Retirement Group today to speak to one of our professional wealth advisors or risk managers.