Risk Management

Proverbs 22:3 

A prudent man foreseeth the evil, and hideth himself: but the simple pass on, and are punished.
A prudent person foresees danger and takes precautions. The simpleton goes blindly on and suffers the consequences. (NLT)

It was necessary to change my pension plan a few years ago. My original plan was taken out with my bank, and was initially linked to my mortgage. When the yearly statements arrived I found it quite shocking that the pension plan was not growing much, despite what I was paying into the plan. The bank’s answer was to suggest that I should increase my monthly contribution.

Frustrated, I contacted an old friend who used to work in life insurance. He told me that his son was a pension expert and sent him up to see me. The son arranged a transfer of my pension funds from the bank to another scheme, where he is able to micro-manage client investments. When stocks were doing badly a few years ago, he moved my investments into cash deposits so that they did not lose any value. When stocks and shares recovered, he moved my pension fund back into stocks. As a consequence my pension investment has grown, and is continuing to grow, because my friend’s son is wise enough to foresee fluctuations in the money markets, and take precautions. If I had left my pension fund invested with the bank it would be worth even less now, and I could have faced financial problems in my retirement.

God expects us to do our best to make wise choices in all areas of our lives, and He expects us to be alert to things with the potential to damage us, and our relationship with Him. If we walk with God, and if we are tuned into His voice constantly, then He will guide us. Following God, and listening for and to His voice is important. There is danger all around. Scripture warns us to ‘be alert and of sober mind. Your enemy the devil prowls around like a roaring lion looking for someone to devour’ 1 Peter 5:8 (NIV). Failure to foresee danger and take precautions always has consequences. Such consequences have the potential to extend into eternity.

About David

David: Half Scot, grew up in Guernsey and the UK. Lives in one of the most rural counties of the UK not far from the Welsh border. Former Merchant Navy officer and hydrographic surveyor. Self-employed risk management consultant from 1992 travelling globally to carry out risk and security audits, plus some loss adjusting. Now retired. Father of Nick who encouraged David to start blogging. Married to Marilyn for 40+ years. Four other children in addition to Nick. Nine grandchildren. View all posts by David

5 responses to “Risk Management

  • Kris

    I must admit, that sometimes the energy required to be prudent in things like pension plans or any type of insurance, is exhausting to me…..anything that is accompanied with a small book of “party to the first party” talk sucks up incredible amounts of time if one is going to make an informed decision. I absolutely dread when I am handed a folder filled with sheets of uninteresting, imperative read.

    I still try to be prudent….one has to be, but there is a point where I simply have to trust that the decision we made a year ago is still a good decision. It often is a tricky walk.

    I look forward to not having a dozen fine print, quarterly hand-books in glory! I also look forward to hearing more from you!

    • David

      I am sure there will be no fine print in glory! I have mixed feelings about taking out pension plans on earth, but it seemed a good illustration for this proverb. If I had believed my bank I would have been retiring very comfortably at 60, which is just four years time. As it happens any chance of retirement before my late sixties looks improbable (unless you work for a bank of course!).

  • robertjgood

    The greatest thing to avoid is the wrath of God from our sins. Although I sure could hide your new money manager. 🙂


    • robertjgood

      Sure could use your money manager.

    • David

      He is gem that’s for sure. I guess it is down to relationships. I trusted his father who sold me mortgage protection and my first life insurance policy when I was 22 years old and newly wed. I should have gone to him for my pension too instead of listening to the bank! That first policy matured a couple of years ago and provided us with income at a time when my invoices (I am self-employed) were up to six months late in getting paid. God has certainly provided and filled in many gaps in my prudence!

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