5. Risk in our Lives

Personal Threats & Impacts:

• Unauthorized Credit Card Charges: Can lead to frozen accounts, card replacement hassle, and updating bill payments.
• Mitigation: Avoid storing credit info on devices/browsers.

Security Mitigation:

MFA (Multi-Factor Authentication): Adds security layers (username/password + email/phone code). Highly recommended by banks.

Risk Transfer:

• Travel Insurance: Covers prepaid expenses for cancellations (e.g., cruises due to weather).
• Other Insurance: Health coverage for accidents; Identity Theft policies.
• Provider Perspective: Companies manage financial risk by ensuring premiums exceed expected payouts.