Analyzing your financial risks has two stages:

1. identifying the risks
2. evaluating the risks

Identify the Risks

This is where your advisor

• may ask you to complete a questionnaire ("Know Your Client")
• gather and analyze your financial statements
• prepare a cash flow chart
• examine the insurance you already have

Evaluate the Risks

• what is the maximum possible loss?
  • if you own a building, a fire might require full replacement of the building
• what is the maximum probable loss?
  • if you have three trucks that take different routes or the same route at different time, then you may insure against the death of one of the three trucks and truckers