Preparing for Risk

We deal with risks everyday but in most cases we don't really give it a second thought. Whether it having smoke detectors in our home or an evacuation plan at work, the presence of risk is something that we can take for granted. But that can create big problems when the risk turns into a threat and we have not adequately prepared. In the rush to address the threat, our decisions may not be optimal.

• Think of a risk response plan that you have in your personal life, such as automobile, homeowner's, or renter's insurance.
• Discuss the four primary responses to negative risks, pros and cons of each, and specific cases where one might be preferred over the others.
• How does your decision-making process compare to that of an organization determining risk mitigation strategy for a project?