The Importance of Risk Management for An Entrepreneur

Posted on Thursday, June 09, 2016 by Jessica Helou

Risk management can be defined as the process of making decisions in an environment of uncertainty with respect to an action that is going to occur and to the consequences that will exist if this action does occur. 

Success in business requires excellence in risk management. For this reason, entrepreneurs need to be “intelligent” in the management of risk.
An entrepreneur must be aware of the risk, distinguish the different kinds of risk in order to learn how to mitigate then or to minimize their effects and optimize the resources used in management; all of this forms a part of the intelligence of business management.

The Risk Management Process:
The management of risks is an essential part of the strategic management required of an entrepreneur.
Its objective is to add as much value as possible to all of the company’s activities in a sustained manner.
For this purpose, it introduces a common vision of the positive aspects, opportunities, and of the negative aspects, threats, that could affect the business project, increasing the likelihood of success and reducing the likelihood of failure, as well as the uncertainty of achieving the entrepreneur’s objectives.
The different environments in which risks can arise must first be determined, in order to then proceed to undertake a systematic identification, analysis and treatment of such risks.

Characteristics of Risk Management:
Ongoing process in continuous development which takes places throughout the company’s strategy.
All of the risks that surround past, present and, above all, future business activities should be dealt with methodically.
Risk management should be integrated into the company’s culture.
The entrepreneur must convert strategy into operational targets, by assigning responsibilities throughout the company, with each manager and each employee being responsible for risk management as a part of their job description.
Risk management favors the measurement and reward of output in light of targets, thus promoting staff efficiency.

Advantages of Risk Management:
• Risk management improves the decision-making process and planning
• Offers the entrepreneur an integrated view of his or her business
• Efficient assignment of financial and operating resources within the organization
• Supports the employees and improves the organization’s knowledge base
• Protects and enhance the company’s assets and image
• Develops a structure that enables future activities to be carried out in a controlled manner.

read more

Financial Priorities Change Over Time, But a Good Saving Plan Lasts a Lifetime.

Posted on Thursday, May 19, 2016 by Jessica Helou
I can never be surprised by the change we pass thru in our life, especially with the financial priorities. 

In your teens, you tried to save for a car, in your 30s you might be saving for your kids’ education and by your 40’s and 50’s you start saving for your retirement since you can make sure that your children can manage their life path and be more responsible. In order to get ahead through all these steps, you should definitely have a solid saving plan to stick on whenever your goals or priorities may change.

A saving plan will keep you on track with your long-term goals regardless of the economic downturns one can encounter along the way.

Of course, the key to any saving plan is to start early. "A little bit saved each month starting at age 25 beats a lot saved every year starting at age 50," says Heather Franklin, a certified financial planner in Toronto. "Every day you wait to put a savings plan in place could affect the lifestyle you want."
You can fill a free life insurance quote to provide you with solutions that offer financial guarantees for you and your family.

Following these five essential steps will help you create a successful savings plan:

1. Having a Clear Objective of What you are Saving for:
No one can get to the destination he aims for unless he has a road map. People know they have to save, but if they can visualize their financial goals, it really helps. It also helps to write down each objective with the amount you want to save and a target date for reaching your goal since nothing comes in one shot. This can make sure you’re on the right track reaching your financial goals with success.

2. Determine How Much you can Save:

Saving is always related to spending; whether you make $50,000 or $150,000 a year, you need a snapshot of how much you're spending. That's where a budget comes in. If only 5% of income is all you can afford, start there, then work on increasing it to 10% or 15% until you reach the saving percentage you determined for your financial goals. If you're unsure how much you should be saving, Roy Keyrouz is always there to help you build a budget and show you ways to save that you have never considered. 

3. Choose the Appropriate Solution:

Choosing the right savings vehicle will depend on how much you can save, how frequently you plan to add to your savings, and how quickly you may need to access that money.

4. Make it Automatic:

If you don't see the money, you're less likely to spend it. Once you know how much you want to tuck away-say 5% or 10% an automatic transfer to a separate savings account or for your life insurance as soon as you're paid. Even small amounts count. It will hurt for the first two to three times, but after that, you'll get used to it.

5. Monitor your Progress:

Take a few minutes every few months to see if you're meeting your savings goals. "If you get a salary increase, add it to your savings, it shouldn't be an opportunity to spend more."
If you're saving for your child's education, make sure you understand the idea of owning a life insurance since it helps a lot with your child’s education fees.

read more

Planning as a Personal Power

Posted on Tuesday, May 10, 2016 by Jessica Helou
As you may start thinking about planning, you will find a big link between a plan and personal power.
Not every situation can be planned especially the ones that are evolving and ambiguous in nature. For a simple reason; they are out of our control; forcing ourselves to make it happen causes a lot of stress.

Whenever you have direct influence over the outcomes and you have the power to move things on, this is when plans are useful.

You should always be in the process of learning to tell the difference between what can and can’t be planned saves a lot of headaches.
I have also learnt that there are aspects of my life that cry out for planning. And when I don’t plan, I feel dis-empowered and stressed out. In these cases, planning is powerful.
When you plan your actions written on a paper, you can achieve them faster and feel the personal power built. This is when you’re the one that can makes things happen.
When you don’t plan, you end up fulfilling other’s needs and goals, forgetting about your own priorities.
Did you encounter such an event where you started accomplishing other’s request in order to start with your own at a later stage? This is when you don’t plan.
Planning will teach you the sense of controlling your life, a sense that you’re not the victim of circumstances but the person who always chooses his/her own will.

read more

The Path to a Financial Stability

Posted on Wednesday, April 13, 2016 by Jessica Helou

Starting a family is definitely the most discouraging financial anxieties you’ll encounter at any stage of life. It’s the establishment of a new home, a life with kids and responsibilities. These expenses weigh heavily, especially when you’re in an early stage of your career. You are not even financially settled with a peak earning potential. At the end of the day, you realize that your income is only serving your expenses (college for kids, home expenses, bills, taxes…)

Meanwhile, when you are planning to save money for the future?

The key is to imagine you’re at the beginning of a long-term building process. Financial security is a combination of insurance protection, savings, and investments that accumulate over time. Start small and cover all your bases. As your career progress and your income increases, your financial security will grow as well.
Steps are easy when plan wisely, let us check it out:

Financial Security Establishment:

The first step in establishing your financial security is to face the biggest threats to it by asking yourself some tough questions: What would happen if you or your spouse or partner became sick injured or died? All of these situations can be distressing to your family’s financial health. That’s where insurance comes in.
Life insurance can provide your family members the resources to maintain their lifestyle when you die. It can replace some or all of your income, pay off debts, cover funeral costs and can even help fund longer-range needs like college tuition or retirement.

Partner or Spouse Insurance:

Insure your spouse or partner as well, even if he or she doesn’t work outside the home. A stay-at-home parent provides essential household services (childcare, house keeper, and transportation…) that would be expensive to replace.

Plan for a Private Disability Insurance:

Disability insurance is also a must. It will replace a portion of your income if you are unable to work due to a disabling illness or injury. Why is that important? Think about how long you could make ends meet if your paycheck suddenly disappeared.
Many larger companies and some smaller ones offer some disability coverage to employees through a group plan. Buying your own disability insurance policy independently is also the option worth considering. Unlike group coverage, privately owned insurance stays with you even when you change jobs. Your disability insurance will not be attached to the company you work for.

Saving as an Early Habit:

Given all the costs young family faces, the idea of saving may seem impossible. But it’s crucial to get into the habit early and important to have a source of cash to get back to in an emergency. If you have credit card debt, your first priority should be to pay it off. High interest rates on credit card debt can turn into a long-term drag on your family’s financial health.

read more

Things To Consider Before Retirement

Posted on Tuesday, April 05, 2016 by Jessica Helou
read more

Travel Insurance Policies Must Be Read Carefully!

Posted on Monday, April 04, 2016 by Jessica Helou

When issuing a travel insurance policy, you should always make sure that all the conditions and benefits are set into your advantages and your safety in the first place. 

While reading it, you should go into each point and really understand the description of coverage. 

Here we outline simply what each major part actually does:

 1. Medical Emergencies & Evacuation

 If there’s one reason to buy a travel insurance policy, this should be for the medical emergencies and evacuation. The emergency medical evacuation coverage provides benefits payable up to the policy limit if the insured suffers a medical emergency and requires transportation. It’s important to understand that this coverage is not a medical coverage. Instead, it’s coverage for medically necessary transportation. 

 2. Trip Cancellation 

This section covers your trip cancellation for an unforeseen reason, such as illness, death of a close relative or accident. In order for this section to be active, you should purchase the travel insurance once you start booking your ticket and not a week before your trip. While purchasing your travel insurance, try to understand in depth the policy wording since not all the travel insurance plans cover the cancellation.

 3. Baggage & Personal Belongings 

People often buy the travel insurance policy in case their personal belongings were lost although it’s the least important since your health is more important than the material you will be probably losing. In case you’re taking your laptop, camera or any expensive devices with you, some travel insurances allow you to specify these items in order to cover their higher value. Be careful, if you leave your camera or your belongings in a public place and got stolen, the travel insurance will not cover your losses. Be sure to check the limits of the coverage in this section as well the exclusions

 4. Personal Liability 

Personal Liability insurance covers your liability against a 3rd party. It is designed to offer specific protection against the claim or accident caused where you are involved. The important thing to really understand is that payment is not typically made to you (the insured person), but rather to the 3rd party; someone suffering loss who is not a party to the insurance contract. 

 5. Coming Home Early & Resuming Your Trip 

Travel insurance usually ends the minute you arrive home, means that if you have the travel insurance for 12 months and you came back early after 4 days, you will not be covered at home. We advise you to read the description of the coverage (policy wording) and look at the clauses for the period of cover and the terms "medical evacuation", "trip interruption" or "curtailment" for details on when you may be covered for expenses if you have to return home early.

read more

When Choosing an Ethical Agent

Posted on Wednesday, March 16, 2016 by Jessica Helou

We all see ourselves as ethical human beings, but when it comes to our daily life we can notice the presence of shortcomings all around us especially when meeting others goals. 

This is often used to gain:

  1. Immediate self-interest

  2.  Short-term Benefits 

  3.  Protecting someone 

  4.  Avoiding punishment  

  5.  Winning admiration or interest of others  

  6.  Avoiding embarrassment  

  7.  Maintaining Privacy  

  8.  Avoiding certain harm

According to the Josephson Institute ethics is defined as Standards of Conduct that indicates how one should behave based on  moral duties and values. 

In the business world, ethics are very important in order to maintain a long lasting relationship between an agent and his/her client. 

Sometimes, we are not able to pursue our goals with success, simply because we need to organize it in a way to meet values.

Insurance agents are always tested by their insurance companies in order to help them make the right decision when they find themselves, as they often do, in ambiguous, confusing or otherwise difficult situations that present a conflict of interest or situations that may be perfectly legal but not necessarily ethical. An ethical insurance agent will gain the trust, respect, and loyalty from his/her clients once he/she maintains the standards of conduct toward the people benefiting from the insurance policy. 

His role is to seek out the best he can find for his client and represents that clients best interest.

Brokers representing numerous companies often face an ethical issue; the dilemma of getting the best deal for his or her client, compared to meeting his or her target levels or receiving the highest commission since they are paid on a commission basis. 

For this reason, people should be aware when choosing their broker.

read more

Life Insurance Explained

Posted on Thursday, February 11, 2016 by Jessica Helou

Life insurance is a protection against the loss of income that would result if the insured passed away. The named beneficiary receives the proceeds and is thereby safeguarded from the financial impact of the death of the insured.The goal of life insurance is to provide a measure of financial security for your family after you die. 

So, before purchasing a life insurance policy, you should consider your financial situation and the standard of living you want to maintain for your dependents or survivors. For example, who will be responsible for your funeral costs and final medical bills? Would your family have to relocate? Will there be adequate funds for future or ongoing expenses such as daycare, mortgage payments and college? 

It is prudent to re-evaluate your life insurance policies annually or when you experience a major life event like marriage, divorce, the birth or adoption of a child, or purchase of a major item such as a house or business.

read more

The Power of Financial Planning

Posted on Friday, January 08, 2016 by Jessica Helou

In general usage, a financial plan is a comprehensive evaluation of an individual's current pay and future financial state by using current known variables to predict future income, asset values and withdrawal plans.

This often includes a budget which organizes an individual's finances and sometimes includes a series of steps or specific goals for spending and saving in the future. 

This plan allocates future income to various types of expenses, such as rent or utilities, and also reserves some income for short-term and long-term savings. A financial plan is sometimes referred to as an investment plan, but in personal finance a financial plan can focus on other specific areas such as risk management, estates, college, or retirement.

read more