Risk Management by Choosing Stock in Portfolio

Abstract

Portfolio Management requires a process that engages the expertise of the various stake holders in the organization and a system to provide the analytical support for the process. A well-thought-out process tailored for the organization takes care of the people issues and ensures buy-in for the selected portfolio strategy. Most of the existing portfolios are not developed to handle a portfolio of assets /securities when considering risks and opportunities. This is due to the fact that the expertise required developing portfolio of assets /securities are not processed by individual. When using these single portfolio processes, it is up to the experience of the organization and foremost project managers to find links between assets/securities in portfolio. The scope of a single security investment seems insufficient, and a more holistic. Therefore, existing risk management processes are considered insufficient due to the focus on a single asset/security risk management. In this study it is tried to conclude different levels of risks and opportunities within a portfolio of assets/Securities that can be managed by identifying positive or negative relation between each other.

Keywords: Portfolio, Risk, Risk Management, Stock Prices