Risk management in investing is very important because it involves identifying, analyzing and managing the risks associated with investment decisions. The main objective of risk management is to protect capital, minimize losses, and increase the chances of long-term investment success.

In the investment context, risk refers to the possibility of loss or an unwanted change in the value of an investment. Every investment has inherent risks related to factors such as market fluctuations, economic changes, government regulations or unforeseen events. By understanding and managing these risks, investors can reduce their negative impact and increase the chances of investment success.