We are all in the situation right now that we didn’t expect things like this will happen like the pandemic and other unexpected events that cause this situation. In business, we lose profit, and as employees, some of them even lose their jobs. We didn’t expect that the source of income we have will be gone just like that. Things like these we cannot predict, and as they say, prevention is better than cure. We can also apply this in regards to managing our assets and investment.
In managing our assets, it’s better to be wise and knowledgeable. Scams can happen anytime if we are not well in identifying them. That’s where Bastion Balance comes in to help; the company is an expert in handling this kind of investment that most of us have no idea about.
Risk at stake on Money
Regardless of your asset’s size, investment is the key to utilize and multiply the extra money we have. But we should know the possible investment risks we might encounter while we invest it. Some of these risks are equity risk, interest rate risk, and currency risk. Let’s stick with these three most known types of risk to discuss.
-This type of risk usually arises on company shares we invest. If the stock shares of a specific company go up in the market value, the amount of investment you put in also increases. But the downside is that the value of the shares decreases; the same goes for your investment. So you should be mindful of what kind of bonds or share you will invest in; you should know when the best time to invest is by understanding the market trend.
Interest Rate Risk
-We are all familiar with the term interest rate; we hear it when we have savings and mostly on loans. This kind of risk is based on the investment we have on a loan. So if the interest rate changes, it affects the return of investment we have. It also affects another kind of investment, like bonds. If the interest rate increases, the market value of the bonds decreases. Be wise in choosing which one you want to invest in.
-Risk in monetary value. We can invest in foreign currency in the stock market. But the risk will come in when we don’t manage the rate of that currency well. The value of the money depends on how it has been trading in the market. Every day it changes, so close monitoring of this investment is required.
So, we have discussed some of the risks we might encounter in investing our precious money. There is always a risk on every investment, and we have to be brave enough to face it to mitigate it before it happens. All forms of scam could come to you if you trust easily. Take that in mind that your hard-earned money or the money of your company is in the investment, and whatever happens to it, you can win or lose it, or fall into a scam.
Process in Risk Management
Risk Management can help you a lot with investment. As we all know, the risk that might come with the investment we have makes it better to know it the first time before it happens. Here some steps we can take note.
- Identify the Risk
As we discuss, we have different kinds of investment risks. First, we need to know what type of industry or environment the business we invest in is exposing. With this, we can identify the risk we are facing.
- Analyze the Risk
So we now identify the risk of the investment we have. The next thing to do is to analyze the scope of the risk. How large it can affect the entire investment, and what is the severity of it to the business.
- Rank the Risk Management
Now, first thing first, we need to take action on the risk which we should prioritize. We take action early on the risk that causes a significant loss if ever it will happen.
- Manage the Risk
At this time, we need to discuss the risk with the company members so that we can come up with an excellent solution to it. Contact an expert is one of the things we can do to manage well the risk of an investment.
- Review the Risk
As we review the risk, we will notice some of the risks still exist and will always be around. So what we can do is monitor it by delegating professionals to manage that risk. As the market moves or trends in, it affects our investment.
There’s a lot more to know to the tiny bits of details about risk management. We cannot take it in one seating, and that’s why hiring professionals is the best discussion you make regarding managing your investment. It’s like trusting your future to them. The scam, as it happens, can be prevented by these people. We value the hard-earned money we have, and we want it to be in good management. And for companies, having a trusted professional service in risk management can save them from an unexpected situation of events that may come in.
So as we talk about a trusted company, Bastion Balance is at the top of the list. The company offers services on wealth management and ensuring the money you invest will return and multiply. Cater from an individual to a company that wants to manage their investment well.
Bastion Balance has been in this field for the longest time, so you are secure that professionals or experts handle our investment. It does matter if you have a small business or just an individual who wants to put their money in a good investment. The company is committed to providing good output and results, as promised to the client.