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First, own all the risk

Return is largely outside your control. Risk is not. A detailed approach to reorienting your fiduciary thought processes.

Author By Bruce B. Curwood, CIMA®, CFA® October 8, 2010 at 6:42 AM
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Bruce Curwood: Risk management is the cornerstone of investing.

Bruce Curwood

Rich and Co.

Rich and Co.

October 11, 2010 — 4:09 PM

We would propose the word, and concept, to use is “uncertainity” — not “risk.” Risk has a known probability. “Uncertainity” does not.

One of the challenges for investment services is moving away from the implicit promise/claim that we know the probability of losses, or “risk,” for assets when, in most cases, we do not.

Using “uncertainity” is also in line with neucroscience where our brains, all animal brains in fact, are “uncertanity” averse. Technically, “risk averse” is a misnomer.

Some brains are born more uncertainty averse than otheres, and that is one dimension of inherited, genetic “personality” and critical to financial advice assesments.

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