steps to anticipate the risk your money

Risk is anything that can happen to people who do not want to happen. Every human being has the risk of whatever he was doing. In addition, human life itself also contains many risks.

There are some risks that can be avoided, and there are some risks that can not be avoided. Examples of risks that can be avoided is the risk of accident or theft risks. While examples of risks that can not be avoided is the risk of death.

Effect of risk often cause considerable losses. Whether the loss of the psychological, or losses from the financial side. If you are the unfortunate house fire, then you will experience financial losses in the amount equal to the value of your home when the fire occurred. Therefore, it is important for you to anticipate any risks that may happen to you.
DON'T HAVE TO INSURANCE

Hearing the word anticipation of risk, your mind may be directly transported to the term "insurance". In the science of financial planning, the purpose of insurance is to protect (protect) you from financial losses that may arise from the occurrence of a risk. For example, you probably can not avoid the accident risk to yourself, but you can protect yourself from financial losses that may arise from such accidents.

Are all the risks that could happen to you need to be insured? The answer is no. For example, shoes that often you have the possibility to use stolen. Yes but what you will insure your shoes? Most likely not. Why? This is because if you lose your shoe, the amount of your loss may not amount to much.

Another case when you have a fire house, the financial losses that may arise could be huge. That's why, you need to take fire insurance for your home.

Options to anticipate these risks, referred to Risk Management. For simplicity, I call this in anticipation of risk. In this paper, I will show you how you can anticipate the risks that could happen to you.


VARIOUS OPTIONS

Financial losses can occur when you experience death, accident, illness, or if your possessions are lost or damaged. Sometimes, the financial losses can also occur if you have a lawsuit from a third party, such as when you hit someone else to get hurt and you are required to replace all the medical expenses.

Now, what options are available for you to anticipate the risks? We assume you are required by your boss (or anyone) to bring a package by using the vehicle, from city A to city B. However, the state of the busy street makes you risk having the risk of accidents. Therefore, there are a number of options for you to anticipate these risks:

1. Avoiding Rrisiko. You can avoid the risk of accidents. Way, do not drive. But the consequences, your package will not be sent.

2. Facing Risk. You can drive and take the package as usual without the need to be careful, and you accept the consequences if the true risk of accidents happening.

3. Reduce Risk. You drive and bring the package, but be careful in driving. Thus, the risk of accidents can be reduced.

4. Risk divide. Package that you need to bring divided into two with your friends. He took part in a vehicle package is different, so do you.

5. Risk transfer. You ask your friend who brought the whole package.

Well, now we try to practice the theory of risk anticipation. We suppose you want to buy a house, but like the other houses in general, the house you want to buy a fire risk. To anticipate, then the options available to you are:

1. Contract home, do not buy (avoiding risk).

2. Buying a home, and faced just such a risk, where you expect the fire risk should not happen (at risk).

3. Provide a fire extinguisher in your home (reducing risk).

4. Cede some losses on the other hand if your house had a fire (for risk).

5. Surrender all losses on the other hand if your house had a fire (risk transfer).

The fourth and fifth choices on what we know with insurance. This means that insurance could be the ones you serahi loss if you have a risk.


DECISION MAKING

Once you know what options are available for you to anticipate risks, so your next step is to write what risks might occur to you, and what choices you will use to anticipate them. Below are the steps:

1. Know your risk

2. Evaluation of the consequences if the risk occurred.

3. Take decisions about what options would you use to anticipate these risks

For example, risks that may happen to you is death, accident, sickness, accident on the vehicle, accident on the car, layoffs, and could not work. Therefore, the steps are:

1. Know your risk: death.

2. Evaluation result: Cost of living your family will not be paid leave.

3. Decision:

1. Risk Avoidance: In this case not possible to avoid the risk of death.

2. Facing Risk: It could be, with the consequence that the cost of family life will not be paid

3. Reducing the Risk: The risk of death can not be reduced

4. For risk: give up some of the financing of your family life on the other hand if you're dead

5. Transfer of risk: Submit all your family's financial life on the other hand if you're dead.

It is up to you, a decision which would be taken. After you take the decision to a risk, then repeat these steps for the following risks (such as accidents). And so on. So now you have a program to anticipate the risk of your family.