Defining RISK

RISK = THREATS x VULNERABILITIES

Risk is the probability of loss.

Threat is the potential for harm.

Vulnerabilities are weaknesses that allow a threat to manifest itself against an investment. Investors are vulnerable for several reasons, but a main one is lack of awareness. Often they have not realized the threat. Risk prevention is ideal, but risk detection is a must.

Remarks. Worry is not a sickness but a sign of health. If you are not worried, you are not risking enough.