Essential Rules for Investment Risk Mitigation: A RiskMind Guide

Everyone wants to make money. As much as possible and as easily as possible. The world of investments is full of people looking for a way. Sometimes the first experience works, and sometimes several attempts are required. Sometimes you just have to fail. Once or twice, before achieving success.

There is no 100% secure investment. In such a situation, there is not much profit. But the goal is to manage calculated risks. To minimize them to a minimum. We cannot prevent them, but we can reduce the percentage of failures and their scope.

One of the mistakes people make who really want to invest is to be tempted to invest before checking all the details. I brought some cases like these here in posts, but there are many and varied. So we decided that there is nothing better than giving some thumb rules for a preliminary check of investments.

For example, a person you do not know well, from the country or abroad, approaches you or you approach him (through advertising or even through joint acquaintances), and offers you an investment that is hard to refuse. So, here's a little glimpse into the world of business intelligence and some things you can do yourself.

Where do I start when building a person's profile?

Investment risk mitigation rules in social networks - You won't believe how much information is stored on the network. Go to all networks and scroll back to get an impression of who the person is, what he writes, what interests him, how he expresses himself, and whether there is any correspondence between the person you spoke to, and the person portrayed on the networks. Here you will surely ask, "What if that person is not active on social networks?" Our answer is that in most cases, it is worthy of your attention in itself. It is true that not everyone is active on every social network or intensively, but from my experience, few people have no presence on any social network, certainly when it comes to someone who deals with investments and offers services.

Search engines - Not just Google and not just the first page. Try writing the person's name in quotation marks to get more accurate results. Also, enter the search engine Bing and if it is a person from Eastern Europe or Russia, also try the Russian search engine Yandex. Within the search engines, scroll back a few pages and don't stop at the first page.

At this point, you should already have a general feeling that it is worthwhile to listen to. If the feeling is that there are question marks, do not hesitate to consult with people who can give you an answer. Not every lawyer or investment advisor knows everything. Look for someone who can provide you with the specific information you are looking for. When I work with a criminal lawyer, for example, it is usually someone who is familiar with the subject of fraud.

When I ask my investments advisor about the quality of a particular investment, he will be able to examine it not only in terms of its suitability but also in terms of its chances of success. The professionals I work with, whether a lawyer or an investment advisor, are skilled in identifying situations with question marks and can provide an answer.