Investing has some similarities with the weather. You can’t control the weather but you can control where you live and how you dress. Analogously, when investing you cannot control returns but you can control how much risk you take. A risk management approach to your finances means that you focus on what you can control (risk and risk protection strategies), not on what you cannot control (returns).
Let’s use portfolio planning in retirement as an example of how to take a risk management approach to investing.