Sources Of Risks
From Open Risk Manual
Definition
Sources Of Risks. In the context of the Financial Competence Framework, Sources Of Risks is a topic in the Risk And Reward subject matter domain.[1]
Competences
Mastering the role of Sources Of Risks in financial literacy context requires the following competences:
| Code | Competency Description | Competency Type |
|---|---|---|
| 359 | Aware of possible risks with financial implications (political, economic, environmental and personal factors such as long life expectancy) | Knowledge |
| 360 | Knows why it is important to be aware of low-probability, high-cost events, such as risk of climate-related events | Knowledge |
| 361 | Aware of the (possible) risks related to financial products, including: making inappropriate product choices, using variable interest rate products, committing to fixed interest rates in a variable interest rate environment, and taking out products in foreign currencies | Knowledge |
| 362 | Assesses the financial risks associated with personal decisions and life choices | Skill |
| 363 | Considers the risks of significant projects or purchases | Skill |
| 364 | Takes into account the risk of changes in circumstance, including job loss, increased outgoings, or other external events | Skill |
| 365 | Takes into account the risk of losing some or all household income through ill-health, disability or death of a family member | Skill |
| 366 | Takes into account the types of risks from different financial products | Skill |
| 367 | Motivated to mitigate risks when necessary | Attitude |
| 368 | Confident to make considered decisions when risks become apparent | Attitude |
References
- ↑ European Union/OECD (2022), Financial competence framework for adults in the European Union
