Risk assessment is one of the important steps in the risk management process. Once risks have been identified and assessed, the steps to properly deal with them are much more programmatical. This article discusses the basic understandings and the concept of risk to deal with the investment avenues. It shows investors' attitude towards risk and perception of investments thereon.

Investors are concerned with two principal properties inherent in securities: The return that can be expected from holding a security, and the risk that the return achieved will be less than the return that was expected. Risk is thus, one of the two important characteristic features of an investment. The desirability of any investment depends not only on its promising or expected return but also on the risk exposure of the investment. Therefore, assessment of risk of an investment constitutes an important element of investment decisions of the investors. Unfortunately, the assessment of investment risks many a times is beyond the comprehension of small and household investors.

This is because of precise and accurate measurement of risk exposure of an investment involving the use of different statistical measures. The term `risk' in a simple sense is understood as `the chance of loss'. More formally, it can be stated as "the possibility of suffering from some form of loss or damage". The concept of risk is associated with the investment of every asset, be it a real asset (plant, machinery, furniture, etc.) or a financial asset (stocks, bonds, etc.).

Treasury Management Magazine, Risk Assessment, Risk Management Process, Life Insurance Schemes, Mutual Funds, Risk Management, Indian Capital Market, Companies Act, SEBI Act, Corporate Equities, Investmetn Management, Indian Stock Markets.