Risk Management: Definition, Meaning & Use in Investing

Risk management involves identifying, assessing, and mitigating potential risks in investments to protect capital.

Risk management is a critical aspect of the investment process. It involves techniques such as stop losses, position sizing, and diversification to manage the risk of loss. Investors use risk management strategies to minimize potential drawdowns and ensure that the risk profile of a portfolio matches the investor’s goals. Proper risk management also includes assessing counterparty risk, liquidity, and market factors like volatility.

Let’s connect you to the capital or strategies you’re looking for

We work with allocators, fund managers and strategy providers who value precision, discretion, and real results — not noise.

Let’s explore what’s possible, together.

Whether you’re allocating capital or managing it, we’re here to help you move forward with clarity and confidence.

Let’s explore what’s possible, together.

Whether you’re allocating capital or managing it — we’re here to help you move forward with clarity and confidence.

Talk to Us

Let’s explore what’s possible, together.

Whether you’re allocating capital or managing it — we’re here to help you move forward with clarity and confidence.

Talk to Us

Curated access to exceptional investment strategies, built on trust and long-term alignment.

Confluence Group

Disclaimer

Terms & Conditions

Privacy

Investing in alternative strategies involves risk. Past performance is not indicative of future results. The value of investments can go down as well as up, and you may not get back the amount originally invested. These opportunities are intended for sophisticated or qualified investors who understand the risks involved. Please seek independent financial advice before making any investment decisions.

Curated access to exceptional investment strategies, built on trust and long-term alignment.

Confluence Group

Disclaimer

Terms & Conditions

Privacy

Talk to Us

Schedule an introductory call

Risk Management

Let’s connect you to the capital or strategies you’re looking for

Phone Mask Configuration

Let’s explore what’s possible, together.

Let’s explore what’s possible, together.

Let’s explore what’s possible, together.