Question

Think about yourself, your home, your car, your job and so on. What risks that you face are covered by insurance? More importantly, what risks are NOT insured against?

Consider these risks and what extensions to your insurance cover you might contemplate?

Recent events in the financial sector have shown that risk perception plays a critical role in effective risk management. How much influence do you think any one individual should have alone on key risk management decisions eg traders, managers?

Answer 1

Risk that I face, which are currently insured by insurance are are risk related to my life & my health .

Risk which are not insured are risk of financial losses, property losses.

I can go for ensuring myself with property insurance in order to hedge against property losses and I will be trying to invest into the debt and gold in order to avoid risk of financial losses due to adverse economic cycle.

My insurance cover will be contemplating about risk related to to health issues and life uncertainty because of health insurance and life insurance.

one individual should be having enough control over the risk management because risk management is the ultimate key in the financial market in order to succeed as risk management will be helpful in order to decide upon the risk tolerance and risk taking ability of an individual and it will also help the individual in order to maximize his return because there is always focus upon preparation of optimal portfolio which will be intended to maximize the return and minimise the risk so an individual should always be aware about his potential of risk management and he should always be taking positions based upon his risk appetite which will be helpful for him in order to avoid any kind of distress and make a healthy earning out of Financial Market.