Introduction to Risk Management

Free CFA Level I lesson in Portfolio Management. 19 min read, ~2,801 words.

Risk management = identify, measure, and modify exposures so the portfolio earns intended risks and sheds unintended ones. It is NOT risk avoidance or minimization. The framework is broader than governance: it integrates governance, identification, measurement, infrastructure, policy, monitoring, communication, and strategic integration. Risk governance is enterprise-wide, top-down oversight at...

What this lesson covers

• Content
• Example 1
• Example 2
• Common Mistakes
• Check Your Understanding
• Exam Shortcuts

Learning objectives

• introduction to risk management

Browse all free CFA Level I lessons or jump into free CFA Level I practice questions.