Risk Management
By Carlos Eduardo de Athayde Guimaraes
Is it worth taking risks? If you can sleep well, then yes. Risks are relative; the more financial education you have, the less you run unnecessary risks.
For example, putting your financial reserves in a savings account earns you 0.5% per month and the risk is very low, but if you have more knowledge, you can contribute the same money in a DI investment fund, for example, that earns you 100% of the CDI with the same risk level. If you negotiate with the bank and have more volume, perhaps even 102% or 103% of the CDI with the same risk. This difference between a savings account and the DI investment fund may seem small, but the in the long term it is significant.
Now, for those of you who are bold and like to take risks, new businesses and actions bring more generous returns. But don’t forget that age-old rule, the greater your knowledge of the business, the fewer the unnecessary risks you’ll take. How about selling real estate while it’s hot and buying stock shares while they’re low? Don’t you think the time is ripe? Do you know these two markets? If so, then hop to it. If not, why not educate yourself financially?
Carlos Eduardo de Athayde Guimaraes has a Master’s Degree in Finance and is a professor. He is also the Financial Director for FESP-PR.
