Financial Risks

The analysis of risks is central to us.

We think that the widespread view that investments can be simply split into low risk and high risk investments is too simplistic and delusive.

No investment is 100% risk-free in every respect. Every investment contains a combination of specific risks. Every investor must know whether these really fit into his or her risk profile.

Therefore, we put special emphasis on two basic questions:

1) What risks exist with investments and how can they be assessed?

To analyse every investment risk in a proper context, we distinguish between four specific risk kinds and assess every risk kind separately:



• the default risk
• the price risk
• the liquidity risk
• the inflation risk

To make the risk assessment clear in general terms, we have introduced a transparent and easily understandable system for the evaluation of risks.

2) What is the investor’s personal attitude to risk and how great is the risk-taking capacity of the investor?

To establish an optimal asset structure for an investor, it is necessary to identify the investment objectives. In addition, a risk profile must also be determined; this should reflect the attitude of the investor towards taking risks as well as his financial ability to cope with the possible negative consequences of risk-taking.