1. Always be prepared for the worst-case scenario.A common mistake in risk management is ignoring the worst-case scenario.
Many people are overconfident about the future, especially during good times. As a result, they ignore the worst thing that could happen.
They simply assume that the worst would never happen.But guess what? It takes just one such event to ruin everything. A recent example in the financial world is what happened to Archegos Capital.
Read more on lifeoptimizer.org