Disrupting your approach to planning a life well lived, is unique as it considers all aspects of protection and growth. The balance between the two is found in sound forward planning and implementation.

Following the disruptive approach, you have insight into your own health/contractual/financial/investment/tax, or other potential risk exposure or dangers and the result should something go wrong. Where you plan to prevent danger or grow your wealth, various qualified and effective answers are readily available. All this is built into an application that provides for every category of life.

 

 

The molecule, called a personal risk molecule, depicts a graphic illustration to how a personal exposure can be viewed. In an elementary example in a financial planning context, the estate duty payable on one’s death provides for the impact of the exposure materialising along with the suggested solutions or actions. The risk exposure allows for an action that could prevent the risk from materialising or a severe impact. These personal controls are self financed or the financial consequences of the risk, transferred to an assurer .

 

Estate Duty Example

In the next example , a schedule of specific clinical definitions of a policy of assurance is depicted. This is never discussed or spoken of in the normal engagement process when purchasing an assurance product. Embracing the disruptive approach to financial planning, one now has access specific policy exposure and their consequences in the assurance policy document. Once this is known, you decide if the the consequences of these clauses is within your appetite to take on the exposure. Our motivation for including and suggesting it is included in every assurance purchase, is the number of claims not paid or declined by the insurance company.

In the schedule, we realise insurer B and C pose potential risk as their policy wording differs substantially in their clinical definitions to Insurer A. Under the clinical definitions investigated, Insurer A is the recommended insurer. There are numerous risk exposures one is exposed to in financial planning alone and even more so when looking at the wording of a policy document.

Risk Financing Example 1

The objective when managing risk is to identify all personal and relevant risk exposures, then with the knowledge built into the application, reduce these risks to where the risk is tolerable or low or within one’s risk appetite.

Before and After Action Plan

A Risk Matrix is an essential tool in assessing risk exposures and the benefit of the suggestions. Whereas most software applications provide a static and fixed risk matrix, our software application provides unparalleled flexibility to design one’s own risk matrix.

A matrix report graphically depicts the reduced likelihood of a risk materialising or the reduced impact should the risk arise and the predicted consequence has materialised. The inherent risk rating is compared to the residual risk rating (rating post implementation of controls) and as such depicts the client’s risk exposures, which have been dealt with during an assessment. The residual risk matrix shows how the risk has been reduced with the actions and advice by the planner.

Managing one’s own risk exposures, outside of purchasing an insurance product is a vital component missing in financial assessments and planning. The disruptive approach to personal lifestyle planning aims to identify the most relevant personal risk exposures that may limit or derail an individual achieving their lifetime dreams and goals.

The engagement process allows the planner to methodically determine the ‘best’ course of action for each worrisome concern. There is no concern or risk for which the process is not able to work through.

Peter Šmanjak

Owner and Founder at Infinite Risk

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