Chapter 9 of 10All chapters
Chapter 9 of 10
Risk beyond investing
The same logic elsewhere.
Career and business
Concentrating income in one employer, one client or one skill carries specific risk. Diversification applies to earnings as much as to portfolios.
- A second income stream is risk management, not greed.
- Skills that transfer across industries reduce exposure to any one of them.
Insurance
Insurance transfers rare catastrophic risk for a small certain cost. It is the correct tool for what would be ruinous, and poor value for what would merely be annoying.