Basics Of Risk
From Open Risk Manual
Definition
Basics Of Risk. In the context of the Financial Competence Framework, Basics Of Risk is a topic in the Risk And Reward subject matter domain.[1]
Competences
Mastering the role of Basics Of Risk in financial literacy context requires the following competences:
| Code | Competency Description | Competency Type |
|---|---|---|
| 354 | Aware of risks in a financial context, including those inherent in products and those that can be hedged or insured against | Knowledge |
| 355 | Aware that certain risks with financial implications can be reduced by using certain financial products and/or by taking action (buying insurance, acquiring financial products with capital guarantee, use well-diversified investment products, etc.) | Knowledge |
| 356 | Considers the risks of significant external issues that may impact on personal financial well-being (including for example environmental, technological, health-related, scientific, security or economic factors) | Skill |
| 357 | Motivated to identify own risk tolerance | Attitude |
| 358 | Confident to make own assessment of risks without being unduly influenced by marketing or news items [avoiding availability bias] | Attitude |
References
- ↑ European Union/OECD (2022), Financial competence framework for adults in the European Union
