Risk management identifies potential risks and determines the appropriate steps to mitigate those risks.
Have a back-up plan in place to ensure that your goals will be met in the event of an untimely death.
Living too long
Ensure that your funds do not run out when you need them the most.
Protect your ability to earn an income if you are unable to work in the same capacity or at all.
Lower the risk of personal or business liability.
Consider the impact that a major medical expense would have and ensure that it is properly covered.
Protect your nest egg if you require long-term assisted living.