Investment Risk Profiling:
The first step to risk management is to determine the level of risk that is appropriate for any particular investor. We do this by using risk profiling tools and having a discussion with each investor about those results.
After that level of risk is adopted, it is important to make sure that the portfolio is appropriately diversified at all time.
By monitoring market valuations, we expect to be able to avoid some, but not all major market downturns by reducing portfolio exposure to risk assets when they appear overpriced.