Why is risk management important?

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Effective risk management helps you feel confident about the future, reduce the costs of eliminating consequences and stay calm in stressful situations.
Example: If you insure your property in advance, then in the event of a fire or flood you will not have to pay for repairs out of your own pocket.
Risk management is not about fear of the future, but about being prepared for any eventuality. It helps you feel protected. People who plan their actions in case of risks experience less stress than those who prefer to avoid such thoughts.
risk management
Stages of risk management
Identify the risks
Make a list of all the possible troubles you might face. list of thailand whatsapp phone numbers These can range from major events (a serious illness) to small but unpleasant ones (losing your keys). For example, if you’re planning a trip, risks might include a flight delay, lost luggage, or unexpected accommodation costs. Involve other family members or co-workers in making your risk list so you can cover more possible situations.
Assess their seriousness
For each risk, determine the likelihood of its occurrence and the consequences. This will help you understand what to focus on first. Use a scoring system to quickly rank the risks. For example, from 1 to 5 for likelihood and consequences.
Develop an action plan
Consider what you can do to avoid risks or reduce their impact. Buy travel insurance, keep a spare key with a friend or neighbor, have regular health checks. Make a schedule for checking home equipment: check the plumbing, electrical wiring, and gas equipment every six months.
Be proactive