Protecting your home and business from “Financial Barbarians” is key to FINANCIAL SUCCESS!
Risks – Hazards – Perils — What every you want to call them. I call them the “financial barbarians” that can come out of nowhere and either quickly destroy or slowly erode your wealth.
There are investment risks, health risks, property and casualty risks and business risks.
There are generally 4 ways to manage risk:
- You can RETAIN the Risk – if the risk has a low probability of happening and even if it did happen it wouldn’t hurt you to much you can consider retaining it.
- You can REDUCE the Risk – if the risk has a high probability of happening and if it happened often it would hurt you, then you can consider reducing it and making it more manageable.
- You can AVOID the Risk – It the risk has a high occurrence of happening and when it does the results cause a lot of harm, just don’t do it!
- You can also TRANSFER the Risk – If a risk has a low occurrence of happening but if it did could financially devastate you then you look for ways to transfer the financial impact to someone else.
You can’t live a risk free life and really live but you can manage your risks so that they don’t have the ability to cause financial harm.
As part of my WPPS we look for ways to more effectively manage risk