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.