Risk is not about the journey; it’s about where you could end up. It is the risk of money not being there when it’s needed, reflecting both the chance and the severity of poor returns.An investor’s risk tolerance is their willingness to accept the chance of bad final outcomes in the hope of good ones. Risk management is therefore investor-specific, because for an outcome to be bad, it needs to be bad for someone.Risk avoidance isn’t risk management, and forgoing the chance of higher returns is often an excessive price to pay for being more comfortable with short-term turbulence.