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Assess the Risk

FHI Risk Management

Unless you are aware of what RISK means nothing within this website will be relevant to you. With rewards comes risk. Repeat with rewards come risk.

 

This website is not a financial promotion as per The Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 and the The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2014. None  of the investments are promoted to residents of countries that do not allow their citizens to use the products or services on offer here. Nothing on this website or subsequent communications should be taken as financial advice. By submitting your details you acknowledge that you are fully aware of the risks of the financial markets. 

 

The information on this website is only intended for investors that would be classified under the Markets in Financial Instruments Directive ('MiFID') as a ‘professional client' or ‘eligible counterparty’, Please note that this website is not intended for, and must not be accessed by, investors who would be classified as retail clients under MiFID. If you are in any doubt as to whether you would be deemed to be a ‘professional client’ or ‘eligible counterparty’ please seek professional advice. Past performance is not indicative of future results. The value of your investment may go down as well as up, and you may not receive upon redemption the full amount of your original investment. Participation in the any investment or activity  should only be made by persons with experience of participating in regulated and unregulated schemes.

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The FHI Risk Matrix
Investment Risks
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  • Liquidity Risk: Holding shares in a private company means that unlike a public limited company shares may be difficult to exit prior to any IPO. 
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  • Market Risk: The Company will hold some assets in tradable financial instruments upon which losses could incur through trading losses. 
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  • Systemic Risk: The world Financial markets may experience a "Black Swan" Event whereby the whole system may be in melt down. In such a scenario shareholders may see the value of their shares depreciate substantially.
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  • Bankruptcy Risk: The company may not generate sufficient income to cover it's working capital. In such an event the company may become insolvent. 
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  • Currency Risk: The company may hold some assets in currencies that depreciate therefore the value may decline. 
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  • Regulation Risk:  The company is NOT regulated by the Financial Conduct Authority and buying shares in a private company is not covered by the Financial Services Compensation Scheme. 
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  • Your capital is at risk and there is a possibility that 100% of your investment could be lost. 
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The above list of risks is not exhaustive other than the last. 
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When you place your money in a slot machine if it does not come up as three cherries or bells are you devastated? The same attitude should apply to this investment. 
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  • Don't invest more than you can afford.
  • Don't borrow money to invest in the Company shares
  • Don't Invest until you feel you have done adequate due diligence on the Company and it's directors. 
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