Understanding Financial Risks

What is financial risk?

• Environmental problems

• The possibility of losing money due to investment or market changes

• Legal issues

• Natural disasters

When does operational risk happen?

• When breaking the law

• When natural disasters occur

• When there are system failures, human errors, or process issues

• When investments fail

What does legal risk relate to?

• Money

• Social relationships

• Breaking laws or regulations

• Personal skills

Why do people take risks?

• Because they are bored

• To grow and achieve bigger success

• Because they are forced

• No reason

What does “the thrill” mean?

• Fear

• Excitement and adrenaline from challenges

• Failure

• Pressure

What is one benefit of taking risks?

• Always failing

• Losing friends

• Building confidence and skills

• No change

Which is a negative outcome?

• Joining a club

• Choosing a new major

• Skipping classes and not preparing for exams

• Speaking English in class

Which is a wrong social risk?

• Making new friends

• Speaking in public

• Sharing a friend’s secret

• Joining group activities

Who invested almost all his money in Tesla and SpaceX?

• Taylor Swift

• Elon Musk

• Bill Gates

• Steve Jobs

What helps you succeed in the future?

• Avoiding all risks

• Never trying new things

• Taking risks and learning from them

• Only doing easy things