The Client: Darius Williams, 44, is a single father with three-year old twin boys, who just lost his job as a Finance Analyst. He was employed for nine (9) years with Vroom Finance, a vehicle financing company. Management decided to restructure the company to cut costs and stay competitive. As a result, Darius, along with seven (7) other employees were made redundant. On his exit from Vroom, he received a severance package that included the following: 1. USD $45,496 in cash in accordance with the severance laws in the country 2. Proceeds of USD $19,775 from the company pension plan. If he decides to take cash, he will be taxed 25% by the government. The other alternative is to roll the funds into a new pension plan without penalties or taxes. He now has one month to decide. 3. Three (3) months of health insurance. There are two weeks of coverage left. 4. Three months of life insurance, with the option to continue the plan as an individual. He now has one (1) month to decide. Although losing his job was a huge shock, Darius immediately started looking new employment. The job market was very tough, and jobs like his last position were paying up to $1,500 less than what he was making. Two months after his exit from Vroom, he accepted a Finance Officer job at Maxwell Merchant Bank. The job pays $51,188 (after taxes) annually and is expected to start in two weeks. Benefits include health insurance, life insurance, an annual wellness benefit of $1,000, employer funded pension, and funding to pursue relevant job certifications.

Base on the scenario

1. Identification of the types of risks (including specific examples from the question) that could affect the client and the portfolio
2. An assessment of the risks (e.g., How often could they occur? How severe could they be? Which risks are deemed most likely to occur etc.)
3. Preferred responses to the risks (e.g., Will you accept, reduce the impact, transfer or avoid the risk? How will this be done?)
4. What steps will be taken to monitor and control risks?