Risk Management is defined as the identification, assessment, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events. It can not only be used for your financial planning, but also for everyday circumstances. For example, If you have a list of items that need to be completed by the end of week, you can identify, assess, and prioritize those items to minimize the risk to you. The risk may only be that you won’t complete them all within your timeline. We all use some level of risk management daily without realizing it. Some level of risk management is part of our natural ability to reason. Of course, some have more ability than others.

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