Risk means the possibility of happening something wrong.
Now say, you can do the following once you know that a certain risk exists
- Mitigate the risk by Risk Management.
- Transfer the risk to the Insurance Company
- Hedge the risk with certain other profits.
- Accept the risk and face consequences.
Accepting the risk is different from ignoring the risk.
We accept risks when we are confident that we can manage the consequences if the event occurs.
We ignore risks when we have no idea what type of risk we’re facing.
Ignorance is not bliss, it is danger.
A single unforseen event can wipe out all the savings accumulated over the years.
Unfortunately, the majority of the population ignores the risk rather than managing it.
