Dealing with long term risks Flashcards
1
Q
What are the types of risk
A
Physical injury / death
Loss or damage
Legal liability
Financial loss
2
Q
What is the risk associated with premium bonds
A
No risk
3
Q
What is the risk associated with bank savings
A
Little risk
4
Q
What is the risk associated with unit trusts
A
Risk increases as the value does
5
Q
What is risk transfer
A
Buying insurance to consume the risk of financial products
6
Q
What are the 4 factors of impact on risk
A
Amount of money
Effect on lifestyle
Timing of event
Frequency of event
7
Q
How is degree of risk calculated
A
Probability x impact
