Fundamentals of Risk Management

Importance of risk appetite 
315
risk
Controls 
Opportunities of owning a car (embrace the opportunities) 
1. You can travel more easily than 
depending on others 
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Plan to make full use of the car
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Inform friends and family of your mobility 
2. Enhanced job opportunities
because you will be more mobile 
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Explore broader employment options
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Pro-actively seek new employment 
3. Save money on other forms of 
public transport
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Plan for optimum use of the car
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Seek paying passengers (insurance 
required!) 
uncertainties of owning a car (manage the uncertainties) 
1. Cost of borrowing money to buy
the car could change
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Borrow as little money as possible
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If possible, obtain a fixed-rate loan 
2. Price of fuel (petrol or diesel)
could go up or down
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Buy the cheapest petrol available
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Enter into a car-share pool 
3. Maintenance, breakdown and
repair costs will vary
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Arrange regular maintenance
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Join vehicle breakdown service 
Hazards of owning a car (mitigate the hazards) 
1. You pay too much for the car or
it is in poor condition 
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Benchmark relevant car prices
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Arrange inspection to confirm condition 
2. You are involved in a collision or 
road accident 
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Drive carefully and defensively
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Buy accidental damage insurance 
3. The car gets stolen or vindictively 
damaged 
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Fit appropriate security devices
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Buy motor theft insurance