Risk Management

Risk Management can have many different meanings and applications. However, at the root of any risk management strategy is a plan to protect against financial hardships that could negatively affect a business, family or individual. Risk Management is often related to insurance products, but at Affinity Financial Group, we strive to go further.

In examining the full financial snapshot of our clients, Risk Management often includes examining Buy-Sell/Shareholder agreements as well as facilitating creditor and liability protection of either personal or corporate assets. Once all factors are examined, we then look to create synergies between the Risk Management Strategy and any products that can execute the goals identified in the strategy.


As a business owner there are many potential risks that can affect the success and longevity of your business. Many of these issues can arise from unforeseen health events associated with owners and key personnel. In order to ensure the continuity of your business, consideration should be given for the following risk management strategies.


  • At Affinity Financial Group we are able to examine the corporate structure of your private company and help create a unified strategy that ties together a Buy-Sell protection plan with a shareholder agreement. The objective of this type of Risk Management strategy is to protect the longevity of a private company and its owners from adverse life events such as a disability, critical Illness or death.

Key Person / Business Overhead:

  • As the owner of a company, you often have one or several employees/managers whom are integral to the operations and success of your business. Should one of these key people leave work either temporarily or permanently due to a disability, critical illness or death, it could have a negative effect on the profitability of your business. A strategy to cover overhead expenses while getting the business back on its feet could be paramount to the ongoing financial success of the company.

Business Loan Coverage:

  • As most business owners would agree, in order to start and grow a company, business loans are often a part of the process. They may come with terms and conditions put in place by the lender. What happens if you are unable to continue working due to a health event or death? Would loan payments be missed and jeopardize your family or the business’ well-being? A sound risk management strategy is important in protecting your family and the company you have worked so hard to build. Properly structuring an insurance plan can provide tax savings and more efficient estate planning results.


Mortgage insurance is a very important part of home ownership. There are some key differences between having your insurance through a financial institution compared to a personally owned insurance product.

You should take the time to understand some of the nuances with obtaining insurance through a personally owned policy or a lender. Here is a chart that outlines some of the differences between the two:

mortgage chart

CBC Marketplace did a show outlining the challenges that may arise from taking insurance out through your financial institution. If you would like to see the full show, please click here.



Estate planning is typically a topic of discussion that includes a wide range of considerations. Much of the planning involves tax, corporate structures and legacy intentions.

Life insurance can be used as a very effective tool in combining the need for protection with a tax efficient plan to transition an individual’s wealth which could include real estate, securities, or equity in a private business. A complete plan requires a bird’s eye view of a person’s financial situation before a formal strategy can be put in place. We often work with other legal and tax professionals to ensure a strategy is put in place that not only includes tax efficiency, but fulfillment of a person’s wishes for future generations. Some potential strategies may include:

  • Estate Bond
  • Insured Retirement Strategy
  • Insured Annuity


Are you unsure if your current Risk Management strategy is coordinated to fit the needs of your family, your business, and you personally? 

Most often insurance coverage is put together haphazardly over the course of many years. This may cause overlapping coverage and additional costs that may not be necessary. Varying life events such as buying a home, getting married, having children, starting a business and planning for an estate/legacy tend to trigger the need to revisit your coverage.

The business model and breadth of knowledge at Affinity Financial Group allows us to help review your Risk Management Strategy and ensure it is coordinated with your family’s wishes as well as the Asset Management and Advisory components of your overall Wealth Management strategy.

*Insurance based investment solutions are provided through Affinity Financial Group Inc.. All other investment solutions are through Affinity Financial Group of Harbourfront Wealth Management.