Dumb Data: Risk Management Checklist

This is a list of everything necessary to manage risks that may come from unknown sources.

Please note, this only creates meaning if it’s for the benefit of others, or it’s simply the never-ending motivation of fear. It’s also fear when it doesn’t respect others’ decisions to expose themselves to risk.

Organizational needs tend to practice this list as well, but way more in-depth with entire departments managing them:

  • Occupational risk – the risk of doing something in the first place
  • Inherent risk – the raw risk before any controls are put in place
  • Operation risk – the chances of an organization’s procedures failing
  • Concentration risk – too many assets connected to one entity/client
  • Legal risk – the chance of lawsuits or legal action
  • Reputation risk – the dangers of a defiled public image

Risk management involves treating or avoiding loss exposures:

  1. Avoiding risk – simply not performing an activity that could carry a risk (e.g., general safety practices, legal safety).
  2. Reducing risk – using risk control techniques to mitigate the scope of those risks (e.g., preventative efforts, installing fire sprinklers, security systems).
  3. Retaining risk (self-insurance) – holding yourself financially responsible for all or part of a risk (e.g., saving money).
  4. Sharing risk – proportionally distributing risk among multiple individuals according to investment or need (e.g., communal lifestyle, coinsurance/risk sharing agreement).
  5. Transferring risk – arranging a contract for someone else to take the risks entirely (e.g., paying a fee to an insurer, subcontracting work to another entity, a lease arrangement).

Most of this checklist revolves around avoiding and reducing risk, since preventing risks is much less work than trying to resolve them once they’ve happened.

Survival Basics

Mental Basics

Long-Term Survival

  • Have all your money-based paperwork together.
  • If any risk is likely, have a plan for the next step after it happens.

Crisis Preparation

Financial Protection

  • Have sufficient insurance policies to protect all your possessions.
    • Auto
    • Health
    • Disability
    • Life
    • Homeowners/Renters
    • Long-Term Care
  • Have as few debts against as few assets as possible.
  • Keep enough liability insurance to protect against the most financially disastrous thing you could cause to others.
  • Your investments are diversified across safe, boring industries that serve staple needs.
  • Have your retirement and succession plan in place.


Protecting From Conflicts

Protecting From Malicious People

Protecting From The Unknown