Topic 2 - Personal Life Cycle Flashcards
What is a physical risk?
A physical risk includes hazardous sports such as bungee jumping and include more subtle risks such as drinking alcohol and smoking which have the potential to cause long-term damage to health.
What is an emotional risk?
Emotional risks include trusting other people, such as friends, partners and spouses and so risking being hurt by that person. People may try to create pre-nuptial arrangements that keep their finances separate when they marry.
What is ‘risk to reputation’
An example of risk to reputation would be borrowing money and not repaying it on time, the borrower’s behaviour affects the way they are regarded by other people in the future, which will affect credit score and what that person can borrow in the future.
What is a ‘financial risk’
An example of a financial risk would be putting money in an investment that might fall in value, or gambling.
What is an economic trend?
An economic trend include periods when a country is producing and selling increase amounts of goods and services. This is also known as an economic boom.
What is a social trend?
A social trend includes demographics changes, that is, changes to population size and structure through births, deaths, and migration.
