Risk - A Very Important Four Letter Word

Risk is a small word, but the biggest issue for investors to consider. One of our main objectives with this Communiqué is to provide you with a sense of risk in the context of Financial Planning.

The concept of risk related to Financial Planning is subject to much debate. It is noteworthy that the only reference to "risk" in the FAIS legislation is contained in Part VII, Paragraph 8 (1) (c) of the General Code of Conduct. The legislature creates a very wide reference to a provider having to "identify the financial product...that will be appropriate to the client's risk profile and financial needs..."

Set out below is a list of the various risks people are exposed to throughout their lives.

Do yourself a favour and tick the risks that you are currently exposed to:

Personal Financial Risks

	The risk of not beating inflation over the long-term
	The risk of not allocating money for short, medium and long term needs
	The risk of losing your job
	The risk of not planning for retirement
	The risk of not leaving sufficient liquid cash in your estate to care for your family and final expenses on death
	The risk of becoming disabled
	The [financial] risk of divorce
	The risk of not having proper medical cover
	The risk of not having a valid Will
	The risk of depending on another person to support you
	The risk of debt
	The risk of failing to make provision for children's education

Business Financial Risks

	The risk of not having a succession plan in your business
	The risk of the sustainability of a business being dependent on a Key Person
	The risk of your death while working and not unlocking the value of your share in the business for your family's well-being
	The risk of not having a buy-and-sell Agreement in place with your business partners

Remember the old adage: Failure to Plan equates to Planning to Fail.

Whatever you have ticked in the list above, Silke Financial Services has the skill and expertise to address in an objective manner.

Editor: Shane Thom, Silke Financial Services
E-mail: shane@silke.co.za
Tel: +27 21 683 3380 · Fax: +27 21 683 3872
www.silkefinancialservices.com · X · LinkedIn · Facebook

FSP No. 12462 · An Authorised Financial Services Provider