Investment is a process that requires decisive strategies which impact markets positively. Without an effective strategy for establishing a business venture, the chances of losing revenues are high. Revenues are lost in terms of finances and time. Capital used to establish the business includes assets that are valued in monetary terms. Efficient strategies integrate positive aspects of all business practices to keep profit-generation in the right momentum of high-profit margins. Being a risk conservative investor requires business objectives that improve chances of success, in terms of profit revenue generation, in establishing a venture.
I am a risk-tolerant investor who capitalizes on market loopholes dreaded for the possibility of high losses. In other terms, understanding and measuring risks describes a strategy that enables investors to secure a certain market share irrespective of threats that face the venture. For instance, providing hardware and software services would face imminent risks of computer failure (Mishra & Mittal, 2019). It is common to find computer technicians being sued for damages that are irreversible for devices that are wrongly fixed. These risks, among others, would cause a tense business environment that bars an investor from making progressive policies for their organization.
A risk-tolerant investor also understands the importance of staying calm when confronted by a violent client. There are situations when a client becomes rogue and confronts a person inhumanely in a public environment. Such scenarios are common in any business but pose a great risk of engaging in physical violence (Kumar & Kasilingam, 2017). A risk-tolerant investor is able to weather such storms by establishing peaceful means of dealing with conflicts from a different client. This is facilitated by an evaluation of cultural diversity and its associated risks for a given market. Otherwise, ineffective cultural management strategies would lead to a business resolution as authorities would not allow violence involving public entities.
My risk tolerance score is seven which indicates that funds will be withdrawn in 3-5 years which attracts 4 points. These funds will be spent in 6-10 years and this attracts 3 points which accumulate to a total of seven points. A slow strategy of withdrawing funds from a personal account would be associated with timely spending when purchasing stock. Business investments appreciate the importance of time before establishing a business venture as most individuals fail to evaluate options before making a move (Mishra & Mittal, 2019). Withdrawing funds would be accompanied by an expenditure process that gets quality assets for investment. Considering quality over quantity expenditure for assets that would last long with affordable maintenance cost. For instance, purchasing quality computer accessories for a repair shop would promote a business as most clients would spend on quality services. The investment strategy would become successful as a result of understanding the dynamics of client management. Eventually, investment strategies are promoted by challenging oneself in overcoming avoidable risks that accrue high-profit margins for the business.
Becoming a risk-conservative investor entails analyzing all factors of business in different market contexts. Considering cultural diversity aspects, such as language and religion, is an important step when evaluating the feasibility of a venture. Moreover, considering leadership and management theories would enhance an employee-management relationship. Relating with employees in a positive environment would enable the management to come up with progressive strategies that contribute towards high-profit generation in a firm. Elements noted in this discussion would determine a score risk tolerance value for any conservative investor.
Mishra, V., & Mittal, A. (2019). A Comparative Study of Demographic and Risk Tolerance Profile of Conventional and Socially Responsible Investors in India. IUP Journal of Management Research, 18(1), 36-52.
Kumar, V. R., & Kasilingam, R. (2017). Does the Demographics and Selected Investor Profile Factors Influence Financial Literacy?-An Investor Perception Study. Sumedha Journal of Management, 6(2), 75-89.