In this article, we present to you an explanation of the risks of financial investment and a research on investment risks and investment risks Wikipedia and details of a graduation project entitled The risks of investing in securities and the concept of investing in securities and research on investing in securities and what are the risks of securities and the concept of investment risks pdf and investing in financial markets pdf And the risks of investing in the stock market 2021 - 2022
Many investors in general, before starting their own investment process, who have chosen it, are looking for the risks associated with this type of investment.
Whether it is financial investments, investments in stocks, investments in banks, investments in gold, investments in trade and other investments
There are many people looking for types of investment risks pdf, the most important risks of financial investment pdf, the concept of investment risks, as well as a search for investment risks, measurement of investment risks, sources of investment risks, securities risks, and a report on investment risks.
Therefore, in this article, we will present the idea of the risks of financial investment that surround private insurance companies
Management risks: the most important financial investment risks
This type of risk is committed by the manager or management in the company, and this affects the operation of the process
Investment in the insurance sector is exposed to many risks of financial investment, which is the difference of money that is actually achieved from the expected return on investment.
As the basic contract is the actual and real return, I am the second return, which is the expected return that was measured, and here the risks lie here in the investigation process or not, depending on the degree of risk
If the company exceeds these risks, which is when the expected capital equals what has already been achieved
Many companies are wrongly forecasting returns, and this increases the risk
The classification of financial investment risks varies, including regulated and unregulated riris
regulated risk
They are risks related to the system itself, and their impact includes the returns and profits of the securities traded on the stock exchange.
These risks are realized when a major event occurs that affects the entire market
Such as war or external events that occur suddenly, so there is no special plan to protect against these risks, other than informing investors in advance that these risks may occur.
unregulated risks
For unregulated risks, they are risks related to a particular company or a particular sector and are private and independent
It can be protected by diversifying the investor's investment, and this is what is known as diversification of investment risks
One of those risks that may occur in is the disruption of workers in the sector or company to which it belongs
As well as administrative errors and advertising campaigns from competing companies and laws that appear in a new way that affect investment
Equity-related risks
The specific risks related to stocks are the market risks in general, which move the prices of securities, which move together, and that their prices are also due to external events when prices rise or fall in the stock market.
Therefore, stocks offer their prices in the same direction as the market, and this makes it difficult to predict the external events that move the prices of securities
It is difficult for the investor to do something to protect and avoid these fluctuations, which are in a short period in stock prices
So if the investor needs the funds at the same time that the stock market is moving, this leads to selling them at a loss and this means that he needs a longer period of time so that he does not sell his shares at a lower price
Risks related to management, which mean mistakes made by administrators or mismanagement of the company, as these errors affect the company’s course and future and lead to large losses and exposure to bankruptcy
On the other hand, the company's management must intervene in a timely manner to face the problems and circumstances that occur
Therefore, a management method must be carefully worked out to achieve positive effects, high stock prices, and avoid risks.
Read also:
Basics and Principles of Investing : Top 10 Rules of Successful Investing
Top 10 Rules of Successful Investment | Basics and Principles of Investing
Explanation of the Indiegogo Platform for Donations and Crowdfunding of Projects