Title: Evaluate risk-management strategies in a personal financial plan.
Course: Life Planning (19257-18) > Section: Developing a Plan for Financial Sustainability

Evaluation should include

- alternatives for protection against loss (e.g., self-insurance, employee benefits, purchased insurance)
- role of insurance companies
- ways to manage the possibility of loss (e.g., avoid it, reduce it, accept it, transfer it).

Process/Skill Questions:

Thinking

- What is the importance of loss protection in your life-management plan?
- What strategies can you use to reduce financial risk?

Communication

- How do you acquire your attitudes and beliefs concerning loss protection?
- What information is needed to evaluate the strengths and weaknesses of a financial plan?

Leadership

- What circumstances would lead you to accept the possibility of loss rather than insure an asset?
- Under what circumstances would you choose to reduce a risk rather than transfer it through insurance?