FYR012 Why Thinking About Risk Management Is Important

How we quantify and assess risk is individual and has a different meaning for each of us, our appetite for risk is based mainly on the environment we grew up in, our parents and society at large.  The word risk, according to the English dictionary is a situation involving exposure to danger    As someone who is continuously assessing financial risk in the currency and commodity markets, it got me thinking about risk in a wider context, on a daily basis, the wider society and what is the difference in how people assess risk.   Driving a car is risky  Buying a property to rent it out is risky    Starting a business is risky    The financial markets are risky    Relying on an employer as your only source of income is risky    At present, we currently live in a world where stepping outside your front door is risky   Funding your retirement is risky    Would you agree that doing nothing is also risky    We can never remove the risk, but we can mitigate it, we can increase our risk tolerance and perception of risk through research and education, through opening up to new ideas and possibilities, through taking positive action.  0:00 to 1:00 Introduction to risk.   1:01 to 2:55 Accepting everyday risk when we drive our car.   2:66 to 3:05 How we quantify as an individual.   3:06 to 3:29 List of risky endeavours to fund your retirement.   3:30 to 5:38 How we manage risk in the currency and commodity markets using gold as an example.   5:39 to 6:12 Financial markets and human nature.   6:13 to 6:50 Failing to take action towards avoiding old age poverty doesn't remove the risk it just offsets it to a later date or on to someone else.  6:51 to 8:10 Introducing next week's guest Paul, a budding entrepreneur who set up a successful coffee business in 2018  8:11 to 8:48 Wrap up   Have a wonderful day,  The FYR team.  Resources:  Knowledge Area   Trading For Retirement Community and Training Guide To Funding Your Retirement