Risk and the Smart Investor https://www.mheducation.com/cover-images/Jpeg_250-high/0071743499.jpeg?404URL=https://shop.mheducation.com/mhshopweb/images/no_cover_140.png
Table of Contents

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Program Details

Book Table of Contents—Overview

Before the Principles – Set up of the risk principles, decision framework and examples of how they are applied.

Section I - How to assess the situation you are in or the decisions you need to make

Principle 1 – Check emotions at the door, know where you are – understand the facts of the situation, not the hype, check emotions at the door

Principle 2 - Know what you don’t know – question the assumptions you make, it is better to make a wrong decision than to have been oblivious, the inevitable unfolds
quickly
Principle 3 - Risk is measured & managed by people not mathematical models, important to understand change/inflection points

Section II - Know the rules of the road and how to create the best possible outcomes

Principle 4 - There is no return without risk – know your own risk appetite

Principle 5 - Be transparent – risk should be fully understood and discussed openly
Principle 6 - Diversify – multiple risks will produce more consistent rewards
Principle 7 - Checks and balances are good
Principle 8 - Recognize that risk is not an epiphany, it involves blocking and tackling
every day


Section III
- How to make the right decisions

Principle 9 - It is better to be approximately right, than to be precisely wrong
Principle 10 - To be effective – risk is everyone’s responsibility in the decision-making
process, need to be independent
Principle 11 - Understand the importance of your reputation, be mindful of who you are
doing business with
Principle 12 - Fit your decision-making into specific time frames and keep in mind that
your desires may change


Section IV - What tools should I use?

Principle 13 - Scenarios help you visualize plausible but unusual outcomes from different
decisions
Principle 14 - A decision weighting matrix will help you quantify what’s on your mind
Principle 15 - Create tripwires to manage the situation and not be lulled into inactivity


Section V - How do I assess that I made the right decision?
Principle 16 - Know your boundaries; stay in the lane, if you are unsure, ask, re-invention
is good
Principle 17 - Monitor the outcomes, continuously reassess


Section VI - It’s important to learn from your mistakes
Principle 18 – Internalizing bad decisions and reflect on how you can optimize current situation