RFP M2 Chapter 2.1 Risk Management

Summary

In this video, financial advisor Eern Int introduces Chapter 2 on Risk Management from the RFP module, focusing on its impact in financial planning. Key objectives include defining risk management, understanding risk characteristics, differentiating risk types, and grasping the risk management process. The session aims to equip viewers with the knowledge to create effective risk management plans for clients.

Takeaways

• 😀 The speaker is a financial advisor and licensed financial planner, currently working at a financial planning firm and also a certified trainer.
• 📚 Chapter 1 focused on the basic understanding of risk, defining risk, hazards, perils, and how human factors influence risk tolerance.
• 🎯 Chapter 2's title is 'Risk Management', which is part of the RFP module on risk management and insurance planning.
• 🤔 The learning objectives for Chapter 2 include understanding the impact of risk in financial planning, defining risk management, and characterizing risk.
• 🔍 The chapter aims to teach how to differentiate types of risk within each class of risk.
• 🛠️ A critical objective is understanding the risk management process, which is essential for planning.
• 👥 The final objective is to be able to identify and explain key methods of dealing with risk.
• 📈 The speaker emphasizes the importance of understanding risk tolerance in financial planning, especially in relation to human interactions.
• 🏦 The speaker is affiliated with Bank Negara Malaysia and the Securities Commission of Malaysia, indicating a professional background in financial regulation.
• 📊 The discussion is structured to build on the previous chapter, reinforcing the importance of a sequential approach to learning risk management.

Q & A

What is the main topic of Chapter 2 in the transcript?

The main topic of Chapter 2 is risk management.

Who is the speaker in the transcript?

The speaker is Eern Int, a financial advisor representative approved by Bank Negara Malaysia and a licensed financial planner licensed by the Security Commission of Malaysia.

What is the speaker's current professional affiliation?

The speaker is currently attached with a financial planning firm called FMER Financial.

What was discussed in Chapter 1 according to the transcript?

Chapter 1 discussed the basic understanding of risk, including the definition of risk, what is hazard and peril, and factors that influence a person's risk tolerance.

What are the learning objectives of Chapter 2 as mentioned in the transcript?

The learning objectives of Chapter 2 include understanding the impact of risk in financial planning, defining risk management, understanding the characteristics of risk, differentiating types of risk within each class, understanding the risk management process, and identifying key methods of dealing with risk.

What is the importance of understanding risk tolerance according to Chapter 1?

Understanding risk tolerance is important in financial planning as it helps in dealing with human factors and their demographic attributes, which can influence a person's financial decisions.

What does the acronym 'RFP' stand for in the context of the transcript?

In the context of the transcript, 'RFP' stands for Registered Financial Planner, which is a module that includes risk management and insurance planning.

What is the significance of the risk management process mentioned in Chapter 2?

The risk management process is significant as it is critical and crucial in planning and helps in providing a risk management plan for clients.

What are the different classes of risk the speaker mentions the audience should be able to differentiate?

The transcript does not specify the exact classes of risk, but it implies that there are various types of risk within different categories that should be understood.

How does the speaker suggest measuring a client's risk tolerance?

The speaker suggests understanding and measuring a client's risk tolerance through discussions and analysis of demographic attributes and other influencing factors as part of financial planning.

What is the goal for the audience at the end of Chapter 2?

The goal for the audience at the end of Chapter 2 is to be able to provide a risk management plan for their clients, which involves understanding the objectives and concepts discussed in the chapter.