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Risk
Personal
WHAT IS IT?
Risk is the possibility that an event or outcome could be different from what you expect, including the possibility of losing money.
IN PLAIN ENGLISH
It is the part of a decision where the outcome is uncertain.
SIMPLE EXAMPLE
An investment can rise or fall in value. A household can also face risks such as illness, loss of income or unexpected costs.
WHY DOES IT MATTER
Understanding risk means thinking about what could happen, how likely it might be and what the financial impact could be.
THE ROCKET TEST
Risk is uncertainty about what happens next and the possible financial impact.
SEE IT IN ACTION
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