The perceptual aspects of personal risk management.

• Main Authors: Chua, Siew Suan., Kwek, Li Nor., Yee, Lai Ching.
• Other Authors: Nanyang Business School
• Format: Final Year Project
• Language: English
• Published: 2013
• Subjects: DRNTU::Business::Finance::Risk management
• Online Access: http://hdl.handle.net/10356/51899
• Institution: Nanyang Technological University

The objective of this study is to explore the individual person’s perception and management of risk associated with his home and car. Also, the study looks into the various factors that affects a person’s perception of risks and how a person’s perception can affect his attitude towards risk management. To achieve the stated objectives, a survey in the form of two questionnaires were administered to find out how the public perceives the risks associated with their homes and private cars. The survey was based on a sample size of private car owners and houseowners in Singapore. From the survey, it was found that the public has generally underestimated risks associated with their homes and cars. Also, results show that gender is a factor that affects one’s perception of car risks. Besides that, factors that affect one’s perception of home risks include age of respondent, household income and housing types. In addition, the purchase of home insurance is affected by one’s perception. One important limitation of this study is the small sample size of the survey. Based on that, the responses solicited from the sample size and the results drawn from it may not be representative of the public. Based on the findings from the survey, we would recommend public education to be the main tool to narrow the gap between actual figure and personal perception. This is to enable the public to understand the actual loss situation so that they will correct their perception of risk and manage their risks more effectively.