Risk Analysis and Insurance Planning


Risk analysis is the review of the risks associated with a particular event or action. It is applied to projects, information technology, security issues and any action where risks may be analyzed on a quantitative and qualitative basis. Risk analysis is a component of risk management. 


Risks are part of every IT project and business endeavor. As such, risk analysis should occur on a recurring basis and be updated to accommodate new potential threats. Strategic risk analysis minimizes future risk probability and damage.

The process of risk analysis includes identifying and quantifying uncertainties, estimating their impact on outcomes that we care about, building a risk analysis model that expresses these elements in quantitative form, exploring the model through simulation and sensitivity analysis, and making risk management decisions that can help us avoid, mitigate, or otherwise deal with risk.

Insurance planning is a critical component of a comprehensive financial plan. At M Financial Planning Services, we advise our clients on growing and protecting their wealth. Proper risk management and insurance planning are necessary to financial success.

Insurance Planning is concerned with ensuring adequate coverage against insurable risks. Calculating the right level of risk cover is a specialized activity, requiring considerable expertise. Proper Insurance Planning can help you look at the possibility of getting a wider coverage for the same amount of premium or the same level of coverage for the same amount amount of premium or the same level of coverage for a reduced premium. Hence, the need for proper insurance planning. Insurance, simply put, is the cover for the risks that we run during our lives. Insurance enables us to live our lives to the fullest, without worrying about the financial impact of events that could hamper it.

In other words, insurance protects us from the contingencies that could affect us. So what are the risks that we run? To name a few – the risk on our lives that is, the worries of replacement of the incomes that we contribute to the running of the household), the risks of medical contingencies (since they have the capability of depleting our wealth considerably) and risks to assets (since the replacement of these can have tremendous financial implications). If we can imagine a situation where our goals are disturbed by acts beyond our control, we can realize the relevance of insurance in our lives. Insurance Planning takes into account the risks that surround you and then provides an adequate coverage against those risks. There is no risk not worth insuring yourself against, and insurance should first and foremost be looked as a measure to guard against risks – the risk of your dreams going awry due to events beyond your control.