When one asset class is doing poorly, for instance, another might be doing well, which can help balance out the performance of the portfolio as a whole. Controlling Hazard. Building ind slots yonowealth also requires effective risk management. This is determining possible threats to the accumulation of wealth and putting mitigation plans into action. To guard against unforeseen circumstances that might affect assets or income, like illness or disability, one can purchase insurance. One of the most important risk management techniques is diversification.