Explore commonly used personal finance terms.
Aggregated risk is the total risk level faced by an individual or organization across multiple assets or investment categories. By assessing aggregated risk, investors can better understand their overall exposure to economic downturns, sector-specific challenges, or other factors affecting multiple assets. Aggregated risk analysis supports more informed portfolio management, ensuring that investors consider the interplay between different risk factors, and helps in achieving a diversified, balanced investment portfolio that aligns with financial goals.