The key point is knowing the risk that is being taken.
Leslie Rahl wrote“Risk is not bad.What is bad is risk that is mispriced, misunderstoodor unintended." Again, the key is to understand the risk that's being taken.
It's required that those who offer investment services properly acquaint their clients with the risks they will be subject to, so that there won't be any surprises or disappointments, should things not work out as planned.
Risk measurement is the most complicated aspect of performance measurement; enough hasn't been said about it, nor do we fully understand it, though we keep trying.