HUNT VALLEY, Md. (TheStreet) -- Most people buy insurance, but very few actually do risk management. Risk management is when you assess the statistical likelihood of an event happening, the potential cost of that event, the ways to reduce the risk of the event occurring and, lastly, the ways to finance the cost of the event.If you have analyzed these four issues, then you have actually done "risk management." If you have called an agent and talked about some concerns, then you probably just bought insurance.
|True risk management is important for everyone, but vital to the retiree.|
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