Understanding Income Protection and Risk Management

The video discusses various strategies for managing risk, including avoiding, reducing, retaining, and transferring risk. It focuses on financial risks like income loss and liability risks, offering practical advice such as saving money, living below means, and using insurance. The importance of assessing and minimizing risks is emphasized, with examples like job security and safe driving.

What are the main categories of risk management?

• Avoiding risk, reducing risk, retaining risk, transferring risk

• Avoiding risk, eliminating risk, ignoring risk, transferring risk

• Reducing risk, ignoring risk, retaining risk, transferring risk

• Avoiding risk, reducing risk, eliminating risk, transferring risk

What is a good strategy to reduce the risk of losing your job?

• Take frequent leaves

• Perform poorly at your job

• Ignore your responsibilities

• Perform well and be a crucial employee

What should you do if you want to minimize the chances of losing your job?

• Perform poorly at work

• Be a crucial employee

• Ignore your responsibilities

• Take frequent leaves

Why is it important to save money and live below your means?

• To impress others

• To have more time to transition if you lose your income

• To avoid paying taxes

• To buy luxury items

What is the best way to manage retained financial risk?

• Spend all your money

• Save money and live below your means

• Ignore the risk

• Take on more debt

What is one way to transfer financial risk to others?

• By ignoring the risk

• By saving money

• By living below your means

• Through insurance

What is a less common type of insurance for loss of income?

• Unemployment insurance

• Health insurance

• Travel insurance

• Life insurance

What is a government benefit that can help if you lose your job?

• Unemployment benefits

• Health insurance

• Life insurance

• Travel insurance

What is a common form of insurance to manage liability risk?

• Health insurance

• Travel insurance

• Life insurance

• Liability insurance

What should be your first line of defense to avoid liability risk?

• Ignore traffic rules

• Drive as fast as possible

• Avoid driving altogether

• Drive safely and conscientiously