knowledge about risks and their types.

[Egii Nna]

It comes to me that many people engage in risk without knowing what risk is all about, which arouses my interest in creating this thread in order to address more about risk and how critical it might be when you know about it

First of all, WHAT IS RISK?

Risk, in simple terms, is the probability that your action, decision, or wish can be useful or harmful to you. But the hidden definition behind it is that going into risk without knowledge always comes with a negative consequence. That is why you need to know more about the context of risks. Understanding risk is very important in both personal and business contexts to save and guide you against a critical downfall or even bankruptcy and enhance good and better decision-making for individuals, groups, households, or even organizations by identifying,investigating, assessing, and addressing risk before diving into it.

TYPE OF RISK

1. Financial risks
2. Operational risk
3. Strategic risk
4. Compliance risk
5. Reputational risk 

EXPLANATION

1. Financial risk: from the name financial risk, what will first come to your mind is that all this will be associated with finance, and that is actually what it means, but it is more focused on company loan risk, the ups and downs of finance in business, individuals, and groups. This risk does not only focus on companies but also affects individuals and groups of people, but it mostly affects marketing businesses, which include equity risk, interest rate risk,commodity risk, and currency risk.Financially, risk simply means losing money on an investment or market, which might be a reason for poor risk analysis and poor decision-making.

2. Operational risk: Operational risk can be defined as a type of loss that happens as a result of poor management skills, which can be as a result of the employee or the employer, which usually happens in higher business fields, and mostly it is as a result of poor management, which can also include criminal operations like fraud, and the only solution for this is when you are looking for employers. You should always focus on who you are employing, and most importantly, you should always include these two interviews, which include hard work and financial resistance.

3. Strategic risk: this is a type of risk that depends on your decision-making. Why I said so is that this is the level of risk that determines whether you will succeed or not because strategic risk depends on the strategy that you as an investor will use in order to gain or lose, which is sometimes related to financial risk because it also focuses on assessment, analysis, and the most important aspect, which is decision-making.    So this type of risk deals with a lot of concentration; if not, you will always end up regretting it. Crypto trading is a type of risk that deals with higher concentrations, which is why it is classified as an example of strategic risk.

4. Compliance risk: There is a proverb that says a single tree cannot make a forest. This is what they really mean, which is that two or more people bring their ideas together in order to invest. That means all the strategy and analysis will not be done by a single person but by many people, which shows that it will be simpler and have a higher expectation of being successful. That is why most knowledgeable people engage in this type of risk because it has higher risk management than all of the other risks.

5. Reputational risk: this is a type of risk that is the most dangerous risk that you can ever think of, because with a small mistake you will lose everything. This is a type of risk that is most done by newbies in business, because if the investment that they do crashes or fails, they will lose all their capital or shares that they have already invested in, which is capable of affecting any other business, but it most affects the newbies because there are certain businesses that are included as reputational risk businesses, like importing and exporting of goods, shipping, and many others.

[TEBTC]

Knowledge about risk is very necessary as it put you on the advantage on the advent of emergency, risk is something we need not to play with because risk management is key both at home, in your office and in the industry

[peter0425]

Thanks for this very informative post!

I agree that many people do not actually know what entails a risk. This results to them encountering huge losses than they would have if they had just learned about risks. In every investment, there’s always a risk associated and to say that all investments would guarantee you a 100% return is crazy. Yes it might be possible but only if you properly manage the risks that will come your way.

[Freddie Boyer]

EXPLANATION
1. Financial risk: from the name financial risk, what will first come to your mind is that all this will be associated with finance, and that is actually what it means, but it is more focused on company loan risk, the ups and downs of finance in business, individuals, and groups. This risk does not only focus on companies but also affects individuals and groups of people, but it mostly affects marketing businesses, which include equity risk, interest rate risk,commodity risk, and currency risk.Financially, risk simply means losing money on an investment or market, which might be a reason for poor risk analysis and poor decision-making.

It's a very interesting review and we can put this, for example, in the case of market volatility where the presence of quite a lot of new tokens, especially memes and there are also new Altcoins that are not verified, can be very risky if you choose the wrong one.

In other cases, hacker attacks result from saving passwords online, or projects that fail, so the potential for losing money is quite high here.

[Yucky]

Life in itself is a risk, if you choose to live, you must take risk as a part of your lifestyle. Talk about relation and take away the risk that's in it and walk into a relationship that will fail before it even starts, are you talking about choosing a business part or a business partner? Should we talk about walking on the street or engaging or relating with people in our environments?

Risk is part of life and it's part of what brings out the best in us, if you're afraid to risk it all, you will never attain an half level of greatness. Know the risk, walk with the reality and always give it your all as though you have zero obstacle. That's definitely my nuggate.

[Ricardo11]

I totally agree with your explanation of information, especially it will be very useful for newbies who don't know much about risk. It will be very helpful and useful for newbies. To get anything good we need to manage the risks that come our way, and for that we need to know and understand the risks well. This is a help post, so I think it should be in the Beginners & Help thread.

[God bless u]

It comes to me that many people engage in risk without knowing what risk is all about, which arouses my interest in creating this thread in order to address more about risk and how critical it might be when you know about it

First of all, WHAT IS RISK?

Risk, in simple terms, is the probability that your action, decision, or wish can be useful or harmful to you. But the hidden definition behind it is that going into risk without knowledge always comes with a negative consequence. That is why you need to know more about the context of risks. Understanding risk is very important in both personal and business contexts to save and guide you against a critical downfall or even bankruptcy and enhance good and better decision-making for individuals, groups, households, or even organizations by identifying,investigating, assessing, and addressing risk before diving into it.

TYPE OF RISK

1. Financial risks
2. Operational risk
3. Strategic risk
4. Compliance risk
5. Reputational risk 

EXPLANATION

1. Financial risk: from the name financial risk, what will first come to your mind is that all this will be associated with finance, and that is actually what it means, but it is more focused on company loan risk, the ups and downs of finance in business, individuals, and groups. This risk does not only focus on companies but also affects individuals and groups of people, but it mostly affects marketing businesses, which include equity risk, interest rate risk,commodity risk, and currency risk.Financially, risk simply means losing money on an investment or market, which might be a reason for poor risk analysis and poor decision-making.

2. Operational risk: Operational risk can be defined as a type of loss that happens as a result of poor management skills, which can be as a result of the employee or the employer, which usually happens in higher business fields, and mostly it is as a result of poor management, which can also include criminal operations like fraud, and the only solution for this is when you are looking for employers. You should always focus on who you are employing, and most importantly, you should always include these two interviews, which include hard work and financial resistance.

3. Strategic risk: this is a type of risk that depends on your decision-making. Why I said so is that this is the level of risk that determines whether you will succeed or not because strategic risk depends on the strategy that you as an investor will use in order to gain or lose, which is sometimes related to financial risk because it also focuses on assessment, analysis, and the most important aspect, which is decision-making.    So this type of risk deals with a lot of concentration; if not, you will always end up regretting it. Crypto trading is a type of risk that deals with higher concentrations, which is why it is classified as an example of strategic risk.

4. Compliance risk: There is a proverb that says a single tree cannot make a forest. This is what they really mean, which is that two or more people bring their ideas together in order to invest. That means all the strategy and analysis will not be done by a single person but by many people, which shows that it will be simpler and have a higher expectation of being successful. That is why most knowledgeable people engage in this type of risk because it has higher risk management than all of the other risks.

5. Reputational risk: this is a type of risk that is the most dangerous risk that you can ever think of, because with a small mistake you will lose everything. This is a type of risk that is most done by newbies in business, because if the investment that they do crashes or fails, they will lose all their capital or shares that they have already invested in, which is capable of affecting any other business, but it most affects the newbies because there are certain businesses that are included as reputational risk businesses, like importing and exporting of goods, shipping, and many others.

In my opinion there are only two major types of risks the calculated risks and the non calculates or blind risks.

In calculated risks we do some research and the after putting all the efforts and techniques we came to a conclusion that now this trade will make us profits and then we invest. In blink risks we just invest by seeing the hype of a project or by so-called signals group.

[batang_bitcoin]

I didn't know that there are classifications of it and described as how OP did it. To be honest, I don't think people that are taking risk didn't know that they are taking risks. They know for a fact that they do it and they don't mind taking it. In layman's term, it's a gamble of whatever you're taking. Whatever classification you have mentioned and if someone is taking a risk on it, the easiest logic to understand it without being confused is you are taking a gamble.

[kotajikikox]

I didn't know that there are classifications of it and described as how OP did it. To be honest, I don't think people that are taking risk didn't know that they are taking risks. They know for a fact that they do it and they don't mind taking it. In layman's term, it's a gamble of whatever you're taking. Whatever classification you have mentioned and if someone is taking a risk on it, the easiest logic to understand it without being confused is you are taking a gamble.

If you are taking risks without knowing about it nor having learned it then you are definitely gambling. Gambling is just taking chances based on luck and nothing else. No logic whatsoever.

There’s no computations either so everything really is pure luck but once you start studying about risks and winning for it then that is when you can say that that is no longer taking it by chance and you have yourself to congratulate.

[AmoreJaz]

I didn't know that there are classifications of it and described as how OP did it. To be honest, I don't think people that are taking risk didn't know that they are taking risks. They know for a fact that they do it and they don't mind taking it. In layman's term, it's a gamble of whatever you're taking. Whatever classification you have mentioned and if someone is taking a risk on it, the easiest logic to understand it without being confused is you are taking a gamble.

If you are taking risks without knowing about it nor having learned it then you are definitely gambling. Gambling is just taking chances based on luck and nothing else. No logic whatsoever.

There’s no computations either so everything really is pure luck but once you start studying about risks and winning for it then that is when you can say that that is no longer taking it by chance and you have yourself to congratulate.

Just want to say that not all gambling games are based purely on luck. Poker and sportsbetting are couple examples that you also need skills, knowledge and experience to have a high winning chance in your games. But of course, most casino classics are based on luck.

On the note of the different risks that we are facing with, each case is unique, hence, you need to consider it as different from your previous experiences. One should identify potential risks involved on his scenario by checking all the angles contributing the possible success or failure of your decision.

[Rruchi man]

4 Compliance risk: There is a proverb that says a single tree cannot make a forest. This is what they really mean, which is that two or more people bring their ideas together in order to invest. That means all the strategy and analysis will not be done by a single person but by many people, which shows that it will be simpler and have a higher expectation of being successful.

The fact that strategy and analysis are not done by one person does not mean that the chances of success are always higher. In fact, because they are done by many people, strategy formulation and analysis can even be more difficult and confusing, and simple decisions may take time to be debated and argued over by all the people involved in the decision-making process, so the process may not be as smooth and yield the expected result as when just one person is involved.

[Maus0728]

I can totally agree on reputational risk being the most dangerous or highest risk of them all, it's definitely one of those risk that you've got a hard time getting back into, it doesn't even have a tangible reward too at the surface level, your reputation will just improve but sometimes that's it. I'm a bit confused why you didn't mention that if you failed to do what needs to be done when you've got your reputation at risk that your character and the respect of those around you is going to plummet the most because that's how it works most of the time, people will see you differently when you risk your reputation and depending on your results, it can be positive or a negative one.

[Ben Barubal]

     Actually, no matter where we go or whatever we do, the risk is always there with us, and even in every decision we make, it never goes away. It is also through risk that we are also shaped on how to properly manage the things that are important in our lives.

     So, everything you mentioned is correct, and I think that in general terms, we as communities or individuals should learn to handle risks properly when it comes to them, right?
We should accept the fact that risk is part of our life.

[sekalitas]

5. Reputational risk: this is a type of risk that is the most dangerous risk that you can ever think of, because with a small mistake you will lose everything. This is a type of risk that is most done by newbies in business, because if the investment that they do crashes or fails, they will lose all their capital or shares that they have already invested in, which is capable of affecting any other business, but it most affects the newbies because there are certain businesses that are included as reputational risk businesses, like importing and exporting of goods, shipping, and many others.

Thank you for sharing this information about risk. Everything we do carries some level of risk, so knowledge and preparation are crucial. I'm particularly interested in reputational risk. You mentioned that a small mistake can have devastating consequences. How can we mitigate this risk, considering that everyone makes mistakes, regardless of their experience? If the stakes are so high, it seems like people would be hesitant to engage in activities that put their reputation on the line.

[yhiaali3]

Thank you for this comprehensive explanation of risks. Risks, of course, include all aspects of economic life, but what concerns us here are the risks related to cryptocurrencies and investing or trading in them in general.

Whether investing or trading in cryptocurrencies contains great risks if there is not much experience and knowledge of how to avoid risks. For example, investing in new projects contains high risks, so you must conduct research with great and careful care and not risk large amounts.

Also in trading there are strategies to reduce risks such as stopping loss, dividing capital, etc. These are important matters that should not be underestimated.

[AVE5]

I can totally agree on reputational risk being the most dangerous or highest risk of them all, it's definitely one of those risk that you've got a hard time getting back into, it doesn't even have a tangible reward too at the surface level, your reputation will just improve but sometimes that's it. I'm a bit confused why you didn't mention that if you failed to do what needs to be done when you've got your reputation at risk that your character and the respect of those around you is going to plummet the most because that's how it works most of the time, people will see you differently when you risk your reputation and depending on your results, it can be positive or a negative one.

Exactly, while we undergo in examining worst risk in an economy sector, reputations has been the most considerate because people would always regard you by your characters and exhibitions, how you trades on transparent and equality without trample to subue others while your interests is just your priority.

Stabilizing a reputable firm can as much cause viral recommendations where everyone wants to have deals with you basically because you can be accounted on.

[batang_bitcoin]

I didn't know that there are classifications of it and described as how OP did it. To be honest, I don't think people that are taking risk didn't know that they are taking risks. They know for a fact that they do it and they don't mind taking it. In layman's term, it's a gamble of whatever you're taking. Whatever classification you have mentioned and if someone is taking a risk on it, the easiest logic to understand it without being confused is you are taking a gamble.

If you are taking risks without knowing about it nor having learned it then you are definitely gambling. Gambling is just taking chances based on luck and nothing else. No logic whatsoever.

There’s no computations either so everything really is pure luck but once you start studying about risks and winning for it then that is when you can say that that is no longer taking it by chance and you have yourself to congratulate.

Well, it's hard to expound it but in simple terms, taking risk is also a kind of gambling or simply like that. But yes, we have different understanding and thoughts about it. Having to take risk is actually telling what kind of person you are, others don't want to take it because they just can't. So, if you are able to move your life into the next level through taking risks with investments and businesses, it only means that you are doing well in life regardless of what will be the result of those risks.

[Richbased]

Among the whole risks you mentioned the one that causes emotions more is the financial risks because literally, every one wants to make profits in any business or investments they choose to venture into and when things ain't going to as planned a lot of people becomes so emotional so in order to be able to manage risks then you must remove emotions because every investment comes with risk so if you are not able to manage your emotions properly then you are most likely to face some challenges along the line.

[Egii Nna]

Thank you for this comprehensive explanation of risks. Risks, of course, include all aspects of economic life, but what concerns us here are the risks related to cryptocurrencies and investing or trading in them in general.

Whether investing or trading in cryptocurrencies contains great risks if there is not much experience and knowledge of how to avoid risks. For example, investing in new projects contains high risks, so you must conduct research with great and careful care and not risk large amounts.

Also in trading there are strategies to reduce risks such as stopping loss, dividing capital, etc. These are important matters that should not be underestimated.

If you can read on strategic risk, I explain that that is why I said sure risk deals with decision making, and in decision making, we are directing to many factors, including analysis, adoption, and assessment, and without these 3 A's, you can’t trade anything in crypto currency's, and I am sure you also know that.

Let's take an instance where you wish not to put stop loss based on your trading. You also know that you are dealing with a higher level of risk and that you are capable of losing all that you have already invested for the purpose of trading. That means you are not at a reputational risk because you have to stake another fund to invest again. Which deals with decision-making because no one makes such decisions for you.

So this is simple science. Just read and direct it based on gambling, crypto trading, and business, and you will find out that all this is self-explanatory.

[iBaba]

Thanks for this very informative post!

I agree that many people do not actually know what entails a risk. This results to them encountering huge losses than they would have if they had just learned about risks. In every investment, there’s always a risk associated and to say that all investments would guarantee you a 100% return is crazy. Yes it might be possible but only if you properly manage the risks that will come your way.

I have come to the realization for a long time about the importance of studying risks in any business so as to prevent loses from the business. No matter how much you claim to understand the intricacies of business, if you don't focus on learning the associated risks and skills towards curtailing such risks, you will have difficult time trying to achieve a successful business career.

Most people are always interested in the results without dedicating enough time to the process. Rather they are more interested in the ambitious business targets they house in their brains.