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Whitaker-Myers Wealth Managers is an SEC-registered investment adviser firm. The information presented is for educational purposes only and intended for a broad audience. The information does not intend to make an offer or solicitation to sell or purchase any specific securities, investments, or investment strategies. Investments involve risk and are not guaranteed. Whitaker-Myers Wealth Managers reasonably believes that this marketing does not include any false or misleading statements or omissions of facts regarding services, investment, or client experience. Whitaker-Myers Wealth Managers has a reasonable belief that the content will not cause an untrue or misleading implication regarding the adviser’s services, investments, or client experiences. Please refer to the firm’s ADV Part 2A for material risks disclosures.

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Past performance of specific investment advice should not be relied upon without knowledge of certain circumstances of market events, the nature and timing of the investments, and relevant constraints of the investment. Whitaker-Myers Wealth Managers has presented information in a fair and balanced manner.

​

Copyright (c) 2023 Clearnomics, Inc. and Whitaker-Myers Wealth Managers, LTD. All rights reserved. The information contained herein has been obtained from sources believed to be reliable, but is not necessarily complete and its accuracy cannot be guaranteed. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness, or correctness of the information and opinions contained herein. The views and the other information provided are subject to change without notice. All reports posted on or via www.clearnomics.com or any affiliated websites, applications, or services are issued without regard to the specific investment objectives, financial situation, or particular needs of any specific recipient and are not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. Past performance is not necessarily a guide to future results. Company fundamentals and earnings may be mentioned occasionally, but should not be construed as a recommendation to buy, sell, or hold the company's stock. Predictions, forecasts, and estimates for any and all markets should not be construed as recommendations to buy, sell, or hold any security--including mutual funds, futures contracts, and exchange traded funds, or any similar instruments. The text, images, and other materials contained or displayed in this report are proprietary to Clearnomics, Inc. and constitute valuable intellectual property. All unauthorized reproduction or other use of material from Clearnomics, Inc. shall be deemed willful infringement(s) of this copyright and other proprietary and intellectual property rights, including but not limited to, rights of privacy. Clearnomics, Inc. expressly reserves all rights in connection with its intellectual property, including without limitation the right to block the transfer of its products and services and/or to track usage thereof, through electronic tracking technology, and all other lawful means, now known or hereafter devised. Clearnomics, Inc. reserves the right, without further notice, to pursue to the fullest extent allowed by the law any and all criminal and civil remedies for the violation of its rights.

What Are the 2 Types of Risk – And Can an Advisor Do Anything About It?

  • Joseph Browning
  • Jun 30
  • 2 min read

Updated: Jul 1

In the world of investing, risk isn’t a single concept; it’s a spectrum. At its core, risk is divided into two main categories:

 

Unsystematic Risk

These are risks specific to a company or industry, like a CEO scandal, a product recall, or a supply chain disruption. They’re unpredictable, but they can be managed. A good advisor will encourage you to diversify to minimize the impact of unsystematic risk.

 

Systematic Risk

These are the big-picture forces—such as inflation, interest rates, recessions, or geopolitical conflicts—that affect the entire market. They can’t be diversified away. A good advisor will stay up to date on this macro-data, but won’t pretend they can see the future.

 

Why Clients Hire Advisors

Mastering the Controllable

People don’t hire advisors because they expect them to predict the future. They hire them because they know advisors are uniquely qualified to manage the risks that can be controlled.

 

Advisors bring insight, experience, and a strategic lens to unsystematic risk. They know how to build diversified portfolios, spot red flags in business models, and adjust plans when industries shift. More importantly, they keep a close eye on:

 

Business Risk

Are a business’s earnings healthy? Are their management decisions poor, or even irrational?

 

Regulatory Risk

Are there upcoming policy changes that could impact investments or tax strategies?

 

Liquidity Risk

Will the client have access to cash when they need it most?

These are the risks that can derail a financial plan—but with the right advisor, they’re often avoidable.

 

Systematic Risk: The Uncontrollable – and the Edge of Preparedness

Then there’s the other side of the coin: systematic risk. No advisor can prevent a war, steer inflation, or set interest rates. These are forces outside of anyone’s control. But here’s the key: while we can’t control these events, we can help clients prepare for how they might impact their financial lives.

 

As investor Howard Marks wisely said, “You can’t predict. You can prepare.” That’s exactly what financial advisors focus on. We stay informed, vigilant, and ready to make adjustments when the landscape begins to shift. Whether it’s responding to rising interest rates, navigating inflationary trends, or managing risks during global uncertainty, we aim to keep clients positioned with purpose – even in the face of unpredictability.

 

Final Thought: The Power of Perspective

In today’s fast-changing environment, vigilance is more than awareness – it’s about readiness. Financial advisors analyze macroeconomic data, monitor policy developments, and keep a close eye on world events. Our role is to translate what’s happening into meaningful guidance. It’s not about predicting the next move; it’s about being prepared for a range of outcomes.

 

If you’re looking to bring more resilience and perspective into your financial plan, consider a complimentary consultation with a financial advisor. Let’s move forward with confidence – together.

Whitaker-Myers Wealth Managers is an SEC-registered investment adviser firm. The information presented is for educational purposes only and intended for a broad audience. The information does not intend to make an offer or solicitation to sell or purchase any specific securities, investments, or investment strategies. Investments involve risk and are not guaranteed. Whitaker-Myers Wealth Managers reasonably believes that this marketing does not include any false or misleading statements or omissions of facts regarding services, investment, or client experience. Whitaker-Myers Wealth Managers has a reasonable belief that the content will not cause an untrue or misleading implication regarding the adviser’s services, investments, or client experiences. Please refer to the firm’s ADV Part 2A for material risks disclosures.

​

Past performance of specific investment advice should not be relied upon without knowledge of certain circumstances of market events, the nature and timing of the investments, and relevant constraints of the investment. Whitaker-Myers Wealth Managers has presented information in a fair and balanced manner.

​

Copyright (c) 2023 Clearnomics, Inc. and Whitaker-Myers Wealth Managers, LTD. All rights reserved. The information contained herein has been obtained from sources believed to be reliable, but is not necessarily complete and its accuracy cannot be guaranteed. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness, or correctness of the information and opinions contained herein. The views and the other information provided are subject to change without notice. All reports posted on or via www.clearnomics.com or any affiliated websites, applications, or services are issued without regard to the specific investment objectives, financial situation, or particular needs of any specific recipient and are not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. Past performance is not necessarily a guide to future results. Company fundamentals and earnings may be mentioned occasionally, but should not be construed as a recommendation to buy, sell, or hold the company's stock. Predictions, forecasts, and estimates for any and all markets should not be construed as recommendations to buy, sell, or hold any security--including mutual funds, futures contracts, and exchange traded funds, or any similar instruments. The text, images, and other materials contained or displayed in this report are proprietary to Clearnomics, Inc. and constitute valuable intellectual property. All unauthorized reproduction or other use of material from Clearnomics, Inc. shall be deemed willful infringement(s) of this copyright and other proprietary and intellectual property rights, including but not limited to, rights of privacy. Clearnomics, Inc. expressly reserves all rights in connection with its intellectual property, including without limitation the right to block the transfer of its products and services and/or to track usage thereof, through electronic tracking technology, and all other lawful means, now known or hereafter devised. Clearnomics, Inc. reserves the right, without further notice, to pursue to the fullest extent allowed by the law any and all criminal and civil remedies for the violation of its rights.

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