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Risk Management - Michael M. McDonough, Inc.
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Risk Management

Risks and Your Options for Coping

Risk, the single most important concept in finance, involves the potential to lose something of value.  Risk can be seen or unseen.  When it strikes, the loss can be catastrophic or small, and everything in between.  Thinking about risk entails developing a risk perception, or a subjective judgement about the severity and probability of a risk.  This perception allows us to decide which of the four options for dealing with risk to pursue.  The Manage and Avoid alternatives both entail acknowledging risk so it can be mitigated.  Transferring risk to a third party (typically an insurance company) entails a cost in the way of a premium.  Accepting risk is a form of self-insurance.

By evaluating your unique risk capacity, raising issues, and illuminating options and associated tradeoffs, we utilize elements of all four techniques to help prudently navigate the risks you and your business face.  Central to this is understanding the types of perils that may be encountered, their likelihood, and the range of potential damage an occurrence could produce.

On the investment front, we believe a solid risk discussion is the central element of behavioral coaching, which multiple studies have shown deliver real value.

Coverages Placed

We are adept at economically and efficiently Transferring Risk to commercial insurers.  Some of the lines are straight forward risk transfers, and some, like cash value life insurance, have elements of investment embedded with the coverage enabling additional objectives to be efficiently accomplished.  The lines of coverage we and our partners structure and place include:

  • Life insurance to protect those you love and help accomplish your other important objectives (see more)
  • Disability income insurance to protect your most valuable asset – your ability to earn a living. (see more)
  • Property casualty and umbrella liability coverage to protect your businesses and personal assets. (see more)
  • Health insurance to protect yourselves, your loved ones, and your employees from potentially catastrophic expenses.
  • Long-Term Care insurance to protect your retirement savings from potentially catastrophic expenses. (see more)