Risks list - 2025-03-16

Just as our company maintains a risk list, a living document that we regularly review and update, we should all adopt the same proactive approach to our personal lives. Our company's list identifies potential vulnerabilities, like the dwindling pool of COBOL programmers, and triggers action plans to mitigate those risks. We're migrating to Java, a multi-year project, because we've identified a future problem and are taking steps to solve it now.

This same principle applies to our personal well-being. I've created my own risk list, a catalog of potential life disruptions:

  • Premature Death: The possibility of dying unexpectedly.

  • Total Disability: The risk of losing my ability to work due to illness or injury.

  • Inheritance Issues: Ensuring my child's financial security.

  • Loss of Mental Capacity: The potential for cognitive decline and its impact on my finances.

These aren't pleasant thoughts, but they're realities we must confront. Just as our company reviews its risk register, we should periodically examine our own lists.

Building Your Personal Defense System

To address these risks, I'm taking concrete steps:

  • Insurance: Life and disability insurance provide a safety net against unexpected events.

  • Estate Planning: A will or trust is essential for securing my child's future.

  • Lasting Power of Attorney: This designates someone to manage my affairs if I become incapacitated.

I've seen firsthand the devastating impact of failing to plan. Families can be plunged into financial hardship following the loss of a breadwinner. I've also witnessed the vital role insurance paid for the house and pay-out in mitigating the effects of disability.

We all have potential vulnerabilities. Ignoring them is like navigating a dangerous journey without a map.

The Power of Proactive Planning

Just as our company's risk list prompts us to take action, a personal risk list empowers us to proactively address potential challenges. It's not about dwelling on worst-case scenarios; it's about taking control of our future.

I strongly encourage you to create your own risk list and review it regularly. Identify potential threats to your well-being, and develop strategies to mitigate them. By planning ahead, we can navigate life's uncertainties with greater confidence.

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