Business Risk: Sector familiarity increases risk appetite

Author: Michael Pagliari, James Kirk (

Categories: Business risk
Tags: entrepreneurs, Investment
Business risk is always there, but some entrepreneurs will feel more willing to take risks is they have a good understanding of a sector, as Michael Pagliari discusses in this TV show.

Business risk-takers

I think you know risk appetite tends to depend on familiarity, so if a client is very familiar with a particular asset class he may well be prepared to take a greater amount of risk. I mean some entrepreneurs take extraordinary amounts of risk but only because they feel that they fully understand a sector or the dynamics that underline that sector. So where you have that familiarity I would certainly feel more confident taking more risk but where the client is less familiar with the product or less familiar with the structure I would think twice about or let’s say I would have to have a much higher conviction level before pushing a particular product or a particular strategy. Investment does involve risk. The value of investments can go down as well as up. This video contains information believed to be reliable but no guarantee is given. See Video for full disclaimer.

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