Basics Of Risk

From Open Risk Manual


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]


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


  1. European Union/OECD (2022), Financial competence framework for adults in the European Union