Financial planning is often claimed to be a new profession Starting point is preparation of...

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Financial planning is often claimed to be a new profession Starting point is preparation of personal financial statements Next is identification of financial goals and relative time frames All investors must have an understanding of risk and how this impacts on financial objectives
•The financial means to satisfy personal objectives •Useful to consider objectives in 3 time frames: –Short: within one year –Medium: up to 5 years –Long: up to 40 or even more years
•Main reasons include: –Increasing numbers in older age groups –Increase in longevity –Expected restrictions to accessing old age pension –Introduction of compulsory superannuation –Greater range of superannuation choices –Anticipated changes to government fiscal policy

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Robert · Accepted Answer

Different Risks in financial Planning 
Introduction: 
Risk is defined as probability of a future incident occurrence that results in some loss. There must 
be some factor that causes the risk called the Risk factor. Risk factor is an event or situation that 
increases the chance of risk occurrence.  
Risk management refers to those schemes and possibilities which reduce the possibility of a risk 
occurrence and help in mitigating risks that arise out of the risks.  The objective of the risk 
management is to identify, manage and mitigate the risk. The risks that arise out of business, 
risks that arise out of financial decisions and risks that arise out of credit.  Businesses are usually 
exposed to different type of risks are continually looking out to manage these risks through a 
proper system of risk management. Risk management is a process of risk assessment and so the 
identification of risks is very important and credible to institutionalizing a process of risk 
management.  A thorough understanding of the organization and its business model including the 
internal and external environmental condition is very important for understanding and analyzing 
risk and parameters for risk. Organizations as well as individuals usually are exposed to many 
types of risks which an organization or individual shares with its environment by virtue of the 
organization operating in an environment   risks automatically emerge. 
Analyzing different risks: 
Mismatch Risk:

Financial planning is often claimed to be a new profession Starting point is preparation of personal financial statements Next is identification of financial goals and relative time frames All...

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