Risk Management

Risk management is the ability of an organization to control the risks involved in managing the assets of the enterprise. For individual portfolio management, the ability to control risk by Y H & C is handled with a few different methods-

First, I create an investment policy statement in order to have a concrete plan entailing the objectives and constraints involved for the investor. Included in the plan is the identification of the risk tolerance of the client, (who might be a person, company, or organization).  

Second, I develop a strategic asset allocation and tactical asset allocation model which fits the risk profile of the investor. Third, I diversify the assets we purchase according to the allocation models. Fourth, I strive to buy assets at prices which I consider to be fair - an asset well bought is half sold. Fifth, if necessary and appropriate for the investor, I can use options, foreign currency, and indexes to hedge underlying positions.