Table of Contents Praise Title Page Copyright Page Dedication Preface User-Friendly Risk Management What Is a “Risk-Wise” Investor? Acknowledgements CHAPTER 1 - The Increasing Importance of “Risk-Wise” Investing The Holy Grail? The Game Has Shifted The New Way to Gain Mastery Release Your Own Natural, Everyday Risk Management Power CHAPTER 2 - Introduction to the “Risk-Wise” Risk Management Process Releasing Your Natural, Everyday Risk Management Skills Releasing Your Everyday Life-Risk Management Skills in the Investment World The Fundament Principals of “Risk-Wise”Investing Building a Solid Foundation The “Risk-Wise” Investor—Risk Management Process Steps CHAPTER 3 - The Evolving History of Risk and Risk Management Historical Highlights Part 1: The Ancient Past (Pre-600 B.C.) Early History (600 B.C.-A.D. 500) The Middle Ages (A.D. 500-A.D. 1500) Part 2: The Renaissance Part 3: Entry into the Modern Age and Up to the Present Observations from the History of Risk and Risk Management CHAPTER 4 - “Risk”—What Is It, and How Does It Work? Your Definition of Risk Is Crucial The Many Meanings of Risk An Empowering Definition of Risk Understanding the True Nature of Risk CHAPTER 5 - Which “School” of Risk Management Is Best? What Is Risk Management? The Big Question Quantitative versus Subjective Trust the Numbers? Trust Your Gut? Two Is Often Better than One CHAPTER 6 - How Your Body Can Work Against You Both Beast and Human Model T Biology in the Internet Age Understand the Enemy Within Get to Know Your Second Brain Applying This Knowledge CHAPTER 7 - Understanding the Risk Perception/Reality Gap How We Perceive Risks Fluctuating Perceptions Upside-Down Perceptions Outrage and Risk Final Thoughts CHAPTER 8 - Avoiding Common Pitfalls of Decision Making Under Uncertainty Decision-Making Patterns and Biases A Lesson about Ourselves Pattern Finding in Randomness Luck, Smarts, or Both Following the Herd The Greater Fool Trees Growing to the Sky Common Hidden Traps Guarding Against Decision-Making Traps CHAPTER 9 - The Advantages of Managing Risk Categories Managing Specific Portfolio Risks Making the Job Easier Risks You Can Avoid Completely Internal Risks You Can Avoid Risks You Can’t Avoid But Can Manage Risks You Can’t Avoid and Can’t Control Risks and Rewards You Knowingly Seek and Can Control A Closer Look at Crisis Events Simple Is Better CHAPTER 10 - Understanding and Prioritizing Risks The “Risk-Wise” Personal Risk Assessment Understanding Risks Prioritizing Risks Special New Risk Management Priority Category Instability Is the Norm CHAPTER 11 - The “Risk-Wise” Risk Management Planning Process Step 1: Personal Risk Assessment Step 2: Risk Management Strategies Review and Selection Step 3: Evaluate Your Risk Reward Trade-offs Step 4: Make Your Decision to Act or Not Act—Then Implement Step 5: Ongoing Risk Monitoring and Decision Making Reviewing the “Risk-Wise” Investor Risk Management Process Steps CHAPTER 12 - Models of Outstanding Risk Management Real-World Risk Management Examples Lessons from Everyday Risk Managers Commercial Aviation The Armed Services Fire and Law Enforcement Services Common Lessons Learned From Outstanding Risk Managers CHAPTER 13 - The Value of Knowledgeable and Trusted Financial Advice Professional Financial Advice Basic Financial Plan Elements Financial Advisor Services Types of Financial Advisors Professional Designations Financial Advice Pricing Finding Your Financial Advisor Red Flags Knowledgeable and Trusted Advice CHAPTER 14 - Navigating Crisis Events and Bear Markets Crisis Events The Unique Nature of Financial Crises What to Do When You’re Uncertain? Crisis Summary Bear Market Profile Turn Lemons into Lemonade Summary and Afterthoughts Notes Bibliography Additional Information for Readers About the Author Index