How do you manage risk in your personal life?

Educate yourself in whatever you're doing. Listen only to people who have what you want. Understand that you can't have the good without the bad. Remember to enjoy the little things in life.

There are two types of measures for managing risk. Preventive action is when steps are taken to prevent or reduce the likelihood of an event occurring. The contract establishes all the stipulations and conditions that must be met and maintained for the insurer to assume financial responsibility for covering the risk. The use of health insurance is an example of risk transfer because the financial risks associated with health care are transferred from the individual to the insurer.

Generally, this accepted risk is a cost that helps offset greater risks in the future, such as choosing a health insurance plan with lower premiums that has a higher deductible rate. Because I began to contemplate risk so soon, it's ironic that I'm in an industry where risk is at the center of every decision. Supply chain management is fraught with risks, as inventories have shrunk, compliance management has become more complex, globalization is mandatory, and customer expectations continue to rise. Pure risk management involves the process of identifying, evaluating and subjugating these risks, a defensive strategy to prepare for the unexpected.

Managing professional risk will reduce the likelihood of professional problems, such as being fired, or having difficulty finding a job. Insurance companies assume financial risk in exchange for a fee known as a premium and a documented contract between the insurer and the individual. The risk management strategies used in the financial world can also be applied to the management of one's own health. To illustrate the concept, I'll share some of my personal risks to inspire you in risk management.

Cigarette smoking is an example of one such activity because avoiding it can reduce financial and health risks. Business leaders must be aware of risk management both in business and in their professional actions.