risk
management
Defensive Planning . Wealth Protection
Risk management in personal financial planning involves identifying, evaluating, and mitigating potential financial threats to ensure long-term financial stability and growth.
It encompasses a range of strategies aimed at protecting assets and income against unforeseen events such as illness, accidents, or life-threatening event.
Key elements include the use of insurance (health, life, disability, property) to avoid use of hard-earned savings, maintaining an emergency fund, and implementing estate planning to secure assets for future generations.
Effective risk management requires regular review and adjustment of financial plans to adapt to changing personal circumstances and external economic conditions.
By proactively managing risks, individuals can safeguard their financial well-being and achieve their financial goals more confidently.
