In the first of this two part series on risk, David Barr and Felix Narhi take a deep dive into risk assessment at the company level. A primary goal is capital preservation, and this starts with risk assessment. David and Felix discuss the trinity of risk - balance sheet risk, valuation risk and business risk - and discuss their approach to evaluating each of these different types of risk. Understanding the role of behavioral psychology in investments and staying within your circle of competence is also key. They also reflect on how their thinking of balance sheet risk has evolved over the years with the growth of the investment team. Tune in to the next episode to find out more about managing risk at the portfolio level.