What is meant by the term personal risk management?
A. The term risk management normally means consideration of all alternative methods for dealing with a person’s exposure to risks. Personal risks can include anything from personal liability to potential losses that can arise from health issues, disability or death. While not all risks are insurable, there are many potentially serious events that a person can be insured against. In essence, insurance is a means of eliminating or reducing the financial burden of such events by dividing the losses they produce among many individuals exposed to any number of risks and developing a comprehensive program to insure against those risks.
