Michael Carpenter 
The Risk-Wise Investor 
How to Better Understand and Manage Risk

User-friendly risk management tools, tips, and techniques for a
less certain world

Though a very high level of investor uncertainty, anxiety, and
concern about risk now exists, the vast majority of investors do
not genuinely understand investment risk-let alone how to
effectively manage it. The ‘Risk-Wise’ Investor offers a totally
new, user-friendly, non-technical way to help you better understand
and manage uncertainty and risk. This practical guide will help
investors avoid many common pitfalls and make well informed,
knowledge-based decisions when facing uncertainty and risk. It also
shows how to implement a personalized, systematic risk management
planning process that will allow you to manage the risks you face
more effectively and improve the likelihood of achieving specific
investment goals. Though traditional investment advice is based on
taking the long view and diversifying portfolios, the information
here shows how to incorporate additional risk management
considerations into your plans. It also provides innovative
insights that will help investors and their advisors better
understand how to

* Gain a practical, user-friendly, knowledge based understanding
of risk and risk management

* Better understand and manage financial uncertainty and rapid
change

* Release life-risk management skills in the world of
investments

* Become less anxious, more knowledgeable, realistic, and
potentially more successful investors

* Learn a new ’empowering’ definition of risk to more effectively
address risk and uncertainty

* Help reduce the likelihood and potential impact of negative
surprises

Table of Content

Preface.

Acknowledgments.

CHAPTER 1 The Increasing Importance of
‘Risk-Wise’ Investing.

CHAPTER 2 Introduction to the ‘Risk-Wise’
Risk Management Process.

CHAPTER 3 The Evolving History of Risk and Risk
Management.

CHAPTER 4 ‘Risk’–What Is It, and How
Does It Work?

CHAPTER 5 Which ‘School’ of Risk Management
Is Best?

CHAPTER 6 How Your Body Can Work Against You.

CHAPTER 7 Understanding the Risk Perception/Reality
Gap.

CHAPTER 8 Avoiding Common Pitfalls of Decision Making
Under Uncertainty.

CHAPTER 9 The Advantages of Managing Risk Categories.

CHAPTER 10 Understanding and Prioritizing Risks.

CHAPTER 11 The ‘Risk-Wise’ Risk Management
Planning Process.

CHAPTER 12 Models of Outstanding Risk Management.

CHAPTER 13 The Value of Knowledgeable and Trusted
Financial Advice.

CHAPTER 14 Navigating Crisis Events and Bear Markets.

Summary and Afterthoughts.

Notes.

Bibliography.

Additional Information for Readers.

About the Author.

Index.

About the author

Michael T. Carpenter is a true investment industry veteran, with over thirty-five years of professional experience. He has led industry programs at both Harvard and Columbia University. Carpenter has also worked as a successful financial advisor, then regional and national level executive with Paine Webber, and subsequently led national distribution efforts–including sales, sales support, and key accounts teams; product development, marketing, and national advisor and investor educational programs–for John Hancock Funds, as well as Transamerica IDEX, MFS, and Rydex Global Advisors before setting up his own Boston-based sales and marketing consulting firm in 2003.