The Risk Number® is an objective, mathematical approach to removing subjectivity by quantifying the risk of investors and portfolios.
The Risk Number is calculated based on downside risk. On a scale from 1 to 99, the greater the potential loss, the greater the Risk Number. See How is the Risk Number Calculated? for greater detail.
Serving Up Success
Individuals are always evaluating their current location and discerning where they're headed. In the same way, Nitrogen helps investors see what risk they currently have, how much risk they're willing to handle, and how much risk they need to hit their goals. This is the focal point of the Risk Number.
- The road to success begins with understanding how much we possess; that is analyzing our portfolio like using a GPS to know our current location.
- The next leg of the journey is learning our personal Risk Number: being cognizant how fast we're willing to drive. Now we are aware of how much risk we have and the risk we can handle. However, there's one thing missing.
- The final stretch is where we map out our short-term and long-term plans to confirm our route and establish the destination.
Once we know these three vectors, we are ready to make actionable decisions about our lives and dreams. Changes may be required, whether taking on less risk because of our risk comfort zone or adopting more risk for a greater likelihood of success. Whatever changes needed, we are empowered with the knowledge and capability to achieve. Objectivity and understanding lead us to be fearless investors.