Risk mitigation is about practising and getting better at what you do. If asked “how risky is this activity?” most biotech investors would say 6 (out of 6). But to the tightrope walkers themselves, the answer would be 1 or 2. This photo is for real – a man walking between mountains without a safety harness.

Freddie Nock was one of the worlds greatest tightrope artists. He also was one who practised the most. He had a rig in his garden where he could practice in hot or cold weather, wet or dry, wind from any direction, noise.

Investors should simulate what would happen to their portfolios if clinical trials are late or early: come in over or under budget; fail or suceed in their end-points.

Try Pharmagro’s portfolio tools to test these out.