6.2.2 the risk/reward spectrum of the customer - products chosen depend on risk profile. Depends on personality, financial situation, age. Can differ according to nature of life event. amount of risk faced by someone is calculated by probability of risk happening and impact and severity if occurs. consider risk and how great they are. All financial products carry risk. Greater risk, greater reward. Insurance would depend on how they feel about risk. Risk adverse can afford to cover a lot. risk tolerant will cover what's necessary. Some people have self-insurance by saving money. Depends on several factors - legal obligation, cost of insurance balanced with risk, perception of degree to risk, ability to access insurance.