How to develop the risk management plan that responds when you need it
“The devil is in the detail”. This is an old saying relating to legal documents. It can also apply to the analysis required to establish your risks, develop a proper plan and then implement solutions so that the plan responds when most needed.
The Risk STRESS TEST
This is a system that was developed 10 years ago at WISEplanning to help everyday Kiwis to cut through the insurance and risk management jargon so they could understand what they have in place, how useful these current arrangements were and what adjustments were required.
This puts clients in control of the whole process with the assistance of experienced advice to help make decision-making easy.
BRUTAL FACT: We call it a “blind spot”. Many people have little or no understanding about what risks they are exposed to, the consequences of poor planning in this area and how to put together an efficient risk management plan that can respond when required. Worse, some have strong defense barriers up and don’t want to talk about it either.
- Gather the facts: The Risk STRESS TEST questionnaire is completed
- Analyse the facts: WISEplanning analyse the information, prepare a plan and send a full report to the client outlining the risk management plan.
- The Concise Report: The report details specific risks and recommendations to limit damage along with how the recommendations were arrived at. Where existing arrangements are unsuitable, adjustments are outlined including research and analysis from an independent research house for maximum transparency and easy decision making. That way our clients feel confident about making adjustments and are keen to implement a proper plan that is well matched to their specific circumstances.
- Meeting to discuss The Concise Report: The adviser steps the client through the report, provides advice where useful and answers questions. The client instructs the adviser as to what adjustments they want to the plan.
- Recommendations updated and sent to client: The adviser will review the analysis, accessing independent research and analysis as required, update the risk management plan, send to clients and follow up.
- Adjustments finalized: Clients discuss, liaising with the adviser as required and final instructions sent back to the advisor including authorization to set up the new plan.
- The risk management plan set up and finalized: The adviser follows through with setting up the plan as per clients instructions, liaising with any insurance / financial institutions and the client as required. The adviser will also negotiate with any insurance / financial institutions as required, keeping the client up to date along the way.
- Review process is set up: The adviser has responsibility for follow up and review (usually annually). The adviser is available to assist should a serious event emerge offering help and advice as required.
Financial security and confidence
When one member of the family falls seriously ill, it usually impacts on the whole family.
A well thought through risk management plan shelters the whole family from a serious health event, especially if it is mum or dad who falls ill.
With a sound risk management plan our clients and their families can hold onto their financial position during serious illness and protect sometimes, decades of financial progress.
TIP: having a proper risk management plan means that everyone can focus on convalescing and recovery – NOT the stress of not enough money as well.