How Do You Define Risk?

Ridge: I tend to adopt a different philosophy to the traditional way of defining risk. Most traders define risk as a deviation from an expected performance return. But i think it falls far short of how we should address risk, because i believe risk is far wider than the historic performance. And when we look at where we are now into the future, we don't see a single extended future path to expected return. We can't ever assign any degree of certainty within this expected projection of an expected return. So therefore, i view risk as not only that which we can quantify.

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