In a blink of an eye, it has been 3 months since my last post.
With the recent market sell down, there are many starting to get into panic mode. Hence, I thought it was a good time to revisit the topic of financial risk profiling.
Determining one’s risk profile is an important first step to establishing one’s Investment Policy Statement (IPS), which eventually sets the stage for one’s entire investment philosophy and performance measurement benchmark.
Risk profile can be divided into 2 dimensions, namely the willingness and the ability to take risk.
For willingness to take risk, it will be more of a subjective topic in human behavior. It will need to take into consideration a …