Risk management measures of the above enumerated individual risks include risk avoidance, risk prevention, risk reduction and risk transfer. The loss due to bearish share market can be avoided if investments are made in fixed deposit schemes of banks and post offices. To control the risk of inflation is beyond an individual's capacity, however, little planning in the expenditure and shopping may reduce the adverse effect of inflation on family budget. The risk of unemployment may also be controlled with sincerity in the present job along with proper career planning and continuous educational development. The financial loss due to theft and misuse of debit/credit cards can be avoided by safe keeping of cards, confidentiality of PIN, vigilance during the use of cards in ATMs and shops, not divulging the card numbers unnecessarily, signing the cards as soon as received from issuer bank, possessing only the required and manageable number of cards, keeping only limited amount of working funds in the savings bank account and rest in the fixed deposits.
The losses can also be prevented by adopting various loss prevention measures. Non-smoking,
wearing helmet while driving a two-wheeler, using seat belt while driving the car, provision of domestic
fire extinguisher, concealed and standard electric wiring in house, avoidance of storage of
hazardous goods like petrol/diesel in house are some of the measures which would help prevention and
reduction of losses. |
