If you live and work in the Middle East, you need to take a different approach to risk management than someone who lives and works in the West. You may use similar tools, such as life insurance and income protection, but your overall strategy must be geared towards a very different risk profile. Join us as we explore how risk can be effectively managed in a dangerous world.
Identifying Specific Risks
While many countries in the region are not as dangerous as they are painted by mainstream media channels, there is undoubtedly a higher element of risk involved with daily life in the Middle East than in most regions of the world. This risk needs to be managed effectively using tools like life insurance, especially if your plans for the future include getting married and raising a family. The first step towards creating an effective risk management strategy is to identify the biggest threats to your financial stability:
- Accidents – In a world filled with more obvious risks, it’s easy to become nonchalant about danger in the home. As a consequence, domestic accidents may occur more frequently.
- Conflict – Armed conflict is one of the primary risks to income, savings and other financial assets in the Middle East, including Iran.
- Economic Sanctions – If a country you live and work in is hit by economic sanctions, it could affect your ability to provide for your family. Even if your position is assured, high inflation could make life very difficult.
- Job Security – Fluid geopolitical situations generate instability across the economy, making it harder to find positions offering real job security.
There may be other risks specific to your circumstances, which you should add to the above list before moving on to the next step: managing these risks with lifestyle changes, life insurance and other solutions.
Managing Your Risks
Having identified the primary risks to your financial stability, it’s time to take action. While it’s impossible to eliminate these risks, each one can be effectively managed:
- Be Aware – The easiest way to lower the risk of accidents in the home is to be more aware. It’s also a good idea to consider a life insurance policy or similar product, just in case.
- Avoid Conflict – The best strategy as far as conflict is concerned is avoidance. Most insurers exclude acts of war, so minimising your exposure to this risk is the only effective way to manage it.
- Stay Abreast of the News – Economic sanctions are rarely introduced without warning, so the best way to manage this risk is to make sure you stay abreast of the latest developments in this part of the world.
- Negotiate Advantageous Employment Terms – If job security is a major risk, it can be mitigated by negotiating more advantageous employment terms before accepting a new job offer in the region.
A combination of insurance, lifestyle changes and other precautions can significantly reduce the financial risks you’re exposed to when living and working in the Middle East.
