Risk management strategies - HCR Wealth Advisors

Methods for managing risk include avoidance, retention, sharing, transferring, and loss prevention and reduction. We help our clients apply these techniques ... 0RiskManagementThefreedomtoenjoylifecomesfromeliminatingabstractfearandidentifyingthetruerisksandchallengesahead.Weareheretohelpyougainpeaceofmindthroughknowingthatyouareprepared.Home»RiskManagementRiskManagementEverydecisionyoumakecomeswithanassociatedtrade-offorconsequence.Asaresult,thereisanelementofriskmanagementineveryconversationwehavewithourclients.Managingriskentailstheprocessofidentifying,analyzing,evaluating,treatingandmonitoringorreviewinganypotentialthreat.Itisadefensivestrategytopreparefortheunexpected. Financialriskmanagementstrategies Methodsformanagingriskincludeavoidance,retention,sharing,transferring,andlosspreventionandreduction.Wehelpourclientsapplythesetechniquestoallfacetsoftheirlives.Herearesomeexamplesofeachofthetechniques: ● Avoidance Avoidanceisamethodformitigatingriskbynotparticipatinginactivitiesthatmaycauseinjury,sickness,ordeath.Choosingnottosmokecigarettesisanexampleofriskavoidanceasavoidingitmaylessenbothhealthandfinancialrisksassociatedwithsmoking. ● Retention Retentionisanindividualororganization’sdecisiontotakeresponsibilityforaparticularriskitfacesasopposedtotransferringtheliabilitytoaninsurancecompanyby,forinstance,purchasinginsurance.Anindividualdecidingnottoinsureforaparticularperilatallisanexampleofriskretention.Forinstance,decidingnottopurchasedisabilityinsuranceisaformofriskretention. ● Sharing Sharingriskinvolvespartneringwithotherstoshareresponsibilityforriskactivities.Deductiblesandpremiumsareexamplesofapersonacceptingsomeresponsibilitywhiletransferringalargerportionoftherisktoaninsurer. ● Transferring Transferringriskinvolvesthecontractualshiftingofriskfromonepartytoanother.Purchasinganinsurancepolicytransfersaspecifiedthreatfromthepolicyholdertotheinsurer. ● Losspreventionandreduction Losspreventionandreductionareusedtominimizefinancialrisk.Thisrequiresidentifyingthefactorsthatincreasethelikelihoodofalossandthenworkingtoeithereliminateorminimizetheireffect.Visitingyourdoctorforroutinephysicalsregularly,eatingahealthydietandexercisingareallmethodsthatpeopleemployinanefforttopreventorreducethepotentialforloss. Financialriskmanagementsolutions Wealwayshaveaneyeonthelong-term,andworkproactivelywithourclientstodevelopsustainablefinancialplansthatfactorinvarioustypesofriskthatcanbeaddressedusingthetechniquesdescribedabove.Wecanreviewourclients’currentcoveragesinanefforttohelpthembetterunderstandtheirworkplacebenefits,theirpropertyandcasualtycoverages,life,andlongtermcareinsurance,tonameafew.Weencouragethemtocommunicatewiththeirinsuranceprofessionalstodetermineiftheyarecurrentlycarryingtherightlevelofcoverageandtoreviewthecostsassociatedwiththeircoverage. Riskisunavoidable.Howonemanagesthevariousfinancialthreatstheyareexposedtocanmakeabigdifferenceintheoutcomestheyachieveastheyworktoaccomplishtheirgoalsforprotectingtheirfinancialfuture.AtHCR,weutilizeourriskmanagementprocesstohelpclientsbetterunderstandthepotentialdangerstheyaresubjectto,thesolutionstheymayhaveavailableandhowtheymightaddresstherisksassociatedwitheachoftheiruniquesituations.  ScheduleaMeetingwithOurAdvisor Let'sgetintouch Close StartYourPlanWeareexcitedtoconnectwithyou.Pleasefillouttheformtogetintouchwithus.Name* First Email* PhoneMessage Wearecommittedtofosteringadiverseandinclusiveatmospheretopromoteculturalsensitivitywhereweliveandwork.ClickheretoreadourDiversity&InclusionstatementandCoreValues. Close