Risk Topics – Establishing Goals

Risk Topics
The risk an individual faces may be a combination of various factors: the risk of death and accidents, the threat of natural disasters, and market volatility. In terms of personal well being, some risks may affect life expectancy and result in temporary or permanent disabilities.
Establishing Goals
The first goal aims at preserving the integrity of assets or income sources, without turning the strategy into a limitation that hinders compliance with established financial goals. One of its purposes is to avoid total losses. The second goal is to create a personal guide to manage risk, in order to guarantee a coherent process for risk evaluation.
Many risk experts suggest two groups of goals:
Before Losses
Economy
Anxiety Reduction
Guaranteeing compliance with obligations
After Losses
Survival
Cash Flow Stabilization
Capacity to face expected and unexpected financial commitments