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Money Smart Athlete Blog

Risk Management

Financial Literacy, Risk Management

Athlete-Investors: Understand your Risk Appetite

When psychologists and sociologists study deviant behavior they tend to focus on socioeconomic backgrounds, conditioning and environmental and structural factors. Economists on the other hand, for right or wrong, have come up with a different perspective: risk-appetite. They argue that people commit crimes as rational beings weighing risk against gain. In the case of criminals, prison sentence against loot. The rational response to risk is not necessarily to avoid it at any cost but to take it into account in your decision making. Risk appetite refers to the amount of risk that an individual or organization is able and/or willing to accept in pursuit of certain objectives. There are three basic categories of risk appetite: risk-averse, risk-neutral and risk-seeking. Every single individual has their own risk appetite, including athletes.

Risk Management

5 Risks You May Face as An Athlete

Risk is the potential of gaining or losing something of value. It can be defined as the intentional interaction with uncertainty. Similarly, it can be described as the consequence of an action taken despite uncertainty. There are so many risks out there:  the risk...

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