Personal finance risk management
Vilniaus Gedimino technikos universitetas |
The article presents an analysis of a relevant problem of the contemporary global finance system, i.e. personal finance risk management. The current financial crisis has unveiled the incorrect financial management strategies. They are especially evident when referring to the perception of risks in personal finance area, and the ability to properly manage the aforementioned risks. During the economic boom, the seemingly appealing investment decisions were made without taking into consideration the risks potentially associated with them, what resulted in many people losing their money and even remaining largely indebted to financial institutions. Therefore, currently, as the economics is on the wa)' to recovery, it is of the utmost importance to form the correct criteria for personal finance risk management.