Broker Check

risk management

Overview

ePERSONAL FINANCIAL takes a 360-degree approach to Risk Management. We categorize risk into three main areas:

  • Investment
  • Physical
  • Property & Casualty

Investment - Market Risk

Market risk is the possibility for an investor to experience losses due to factors that affect the overall performance of the financial markets in which he/she is involved. Market risk, also called "systematic risk," cannot be eliminated through diversification, though it can be hedged against.

-Source: Investopedia

ePERSONAL FINANCIAL utilizes the latest technology to help clients reduce risk and understand their tolerance for risk prior to a major down market event. We can look ahead six-months in advance and calculate a 95% chance that a client's portfolio will remain within their personal risk tolerance (or how you feel after you open your monthly statement). Stress Test your portfolio here.

Investment - Interest Rate Risk

Interest rate risk is the risk that arises for bond owners from fluctuating interest rates. How much interest rate risk a bond has depends on how sensitive its price is to interest rate changes in the market. The sensitivity depends on two things, the bond's time to maturity, and the coupon rate of the bond.

-Source: Investopedia

ePERSONAL FINANCIAL provides active management of investment managers. We choose portfolio managers that proactively manage interest rate risk to help clients minimize loss in their bond allocation within their overall portfolio. Stress Test your portfolio here.

Investment - Credit Risk

credit risk is the risk of default on a debt that may arise from a borrower failing to make required payments. In the first resort, the risk is that of the lender and includes lost principal and interest, disruption to cash flows, and increased collection costs.

ePERSONAL FINANCIAL provides active management of investment managers. We choose portfolio managers that proactively manage credit risk to help clients minimize loss due to default in their bond allocation within their overall portfolio. Stress Test your portfolio here

Investment - Currency Risk

Currency Risk (also know as foreign exchange risk) is a financial risk that exists in financial transaction is denominated in a currency other than the base currency of the company.

ePERSONAL FINANCIAL understands the risk of global companies face when they trade their goods and services worldwide. A change in currency valuations can have a negative on a companies earnings (or a positive affect). It’s important to understand this relationship when choosing an active investment managers. There is no way to perfectly eliminate this risk, but hiring knowledgeable financial advisors and investment managers can reduce the impact on a clients overall portfolio. Stress Test your portfolio here

Physical - Health

ePERSONAL FINANCIAL can help guide clients when faced with the ever changing choices we now face in paying for health care during your working years and as you transition into retirement. There are options available for clients to efficiently save money for future expenses or on a pre-tax basis. Although a client maybe very healthy today, tomorrow’s unknowns is the reality we may someday face. It’s better to be proactive today, so you can focus on healing tomorrow.

Physical - Disability (long term care)

Physical - Disability (long term care)

ePERSONAL FINANCIAL understands that at no age is the risk of death greater than the risk of becoming disabled. We guide clients to proper select a company provided benefit or if you are better off purchasing individual coverage. There are many variables based upon an individuals occupation, self employed or family history.

Physical - Loss of Life

ePERSONAL FINANCIAL understands the impact of death the emotional and financial impact on family members, business partners, and employees.  Fortunately, it is an event we can plan for in advance to lessen the burden on anyone that is directly affected by your demise. We work with each client to first understand their unique situation, evaluate their current plan of action (or no plan), recommend a solution that perfectly matches to their need and finally implement that solution and monitor over their lifetime.

ePERSONAL FINANCIAL  has established a strategic relationship with a trusted insurance partner,  together we can assist your entire family in evaluating your life, long term care and disability insurance needs. This a key element in any wealth preservation strategy and provides our clients with an additional peace of mind.

Property and Casualty Risk

Another aspect of our service is Property and Casualty Risk Management. It’s easy to overlook the devastating impact an unforeseen event like a lawsuit can have on your finances if not properly prepared. Our process is to:

  • Review activities that expose you to risk and consider ways to mitigate and shield your assets
  • Make sure your insurance limits, contracts, exclusions and sub limit's provide appropriate protection against lawsuit risk
  • Make sure your real estate, autos, collectibles and motorized toys are protected from nature, accidents and theft
  • Provide business owners and professionals with another layer of analysis regarding commercial and errors and omissions risk

Along with all your financial accounts you are able to keep track of all your insurance policies via your eDASHBOARD.

ePERSONAL FINANCIAL  has established a strategic relationship with Desert Insurance Solutions, together we can assist your entire family in evaluating your property and casualty risk exposure. This a key element in any wealth preservation strategy and provides our FinCare clients with an additional peace of mind.