Unit 7: Personal budget management I; activity 4

Take the risk management test. Everyone faces some level of financial risk, but most people hope that catastrophe will strike someone else. Sadly, someone else may be you. This is why it is critical to review your insurances regularly and ensure they still meet your needs. Would you be able to cope with the risk of inadequate cover? Have you got too much cover? if circumstances have changed, have you adjusted your insurance. You can be systematic in looking at the risks you face. Firstly, identify the risk; secondly, analyze how significant the risk is; and lastly, decide how you will handle the risk.

Your choices are: 

a) reduce the risk in some way, like installing burglar alarms.

b) Build up significant financal reserves, soy you can manage a loss of it occurs, saving,