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What types of risks are commonly associated with personal financial decisions? How can these risks be evaluated and minimized to reduce personal and financial difficulties?

Respuesta :

batolisis

Answer:

  • personal risk
  • liquidity risk
  • Inflation risk
  • Interest rate risk

Explanation:

The types of risks that are commonly associated with taking up a personal financial decisions are numerous but this are the most common risks associated with such decision.

A personal financial decision is the act of taking up good and personal financial decisions ( managing your finance ) as regards to a personal financial goal which could be: starting up a new business, buying a new home, renting a new home or taking up a college degree.

To minimize the risks associated with having a personal financial decisions one should seek proper consultations from financial experts and also taking up insurance policies to mitigate losses

ayfat23

The types of risks are commonly associated with personal financial decisions are listed;

  • market risk
  • credit risk
  • liquidity risk
  • operational risk.

Risks that is been associated with personal financial decisions can be minimized in different ways.

To minimize these risks, proper amount of insurance need to be carried so one can fall back on it.

It is advised to maintain adequate emergency funds as this will help in case of emergency.

  • Diversification of one's investments is another way to minimize personal financial decisions risk.

We can conclude that second source of income can help in minimizing personal and financial difficulties.

Learn more about personal financial decisions at:

https://brainly.com/question/1602324

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