The risk management process is never finished. This process must be reviewed from time to time as risk, risk control, and risk transfer methods are constantly changing. Insurance is one of the tools available to reduce risk and only one part of the process.
There are five basic steps to risk management:
- Identifying the risk
- Assessing the risk
- Make decisions about how to manage risk
- Implementing the risk management decision
- Oversee the application of the risk management plan and watching for any new or changing risks
As certified financial planners, we use this process with our clients. Together we can implement a plan to reduce potential pitfalls or eliminate them all together.