The principles of investment and risk management include the following:

1. Diversification – this means investing in different types of assets (such as stocks, bonds, and real estate) and different sectors of the economy to reduce the overall risk of the portfolio.

2. Asset allocation – this involves establishing a mix of different asset classes based on an individual’s or organization’s goals, risk tolerance, and time horizon.

3. Risk management – this involves identifying potential risks and developing strategies to mitigate or avoid them.

4. Monitoring and rebalancing – the investment portfolio should be regularly reviewed and adjusted to ensure that it remains in line with the original investment plan.

5. Long-term perspective – investment decisions should be made with a long-term perspective, rather than in response to short-term market fluctuations.

To make smart investment decisions, individuals and organizations should:

1. Define their goals and risk tolerance – this will inform their investment strategy and asset allocation.

2. Understand the risks and returns of different investment options – this will enable them to choose investments that align with their goals and risk tolerance.

3. Evaluate the performance of their investments – this will help them to determine whether their investment strategy is working effectively.

4. Seek professional advice – individuals and organizations should consider working with a financial advisor to develop and implement an investment plan that is tailored to their specific needs and circumstances.

5. Continuously learn and adapt – the investment landscape can be dynamic and unpredictable, so individuals and organizations should stay informed and be prepared to adjust their investment strategy as needed.