Howard Marks on thinking about risk

Howard Marks on thinking about risk. I want to make a few over-arching comments about risk. 1) Risk is counter-intuitive. The riskiest thing is the widespread belief that there is no risk. 2) Risk aversion is the thing that keeps markets safe. When investors are risk-conscious they will demand generous risk-premiums to compensate them for bearing risk. 3) Risk is often hidden and deceptive. Loss occurs when risk (the possibility of loss) collides with negative events. 4) Risk is multi-faceted. Many times... risks are overlapping, contrasting and hard to manage simultaneously. 5) The task of managing risk shouldn't be left to designated risk-managers... (it) should be the responsibility of every participant in the investment process. 6) Risk should be dealt with constantly. Thinking risk control is easy is perhaps the greatest trap in investing, since excessive confidence that they have risk under control can make investors do very risky things. (VIEW LINK)