This week, I learned a little bit about Risk Management during a speech in Toastmasters. The topic of the speech was project management, but I was interested by the four responses to risk.
4 Responses to Risk
This morning I received a call from a friend of mine who had a difficult decision in choosing the least worst of 2 evils (pretty much, “Which bill do I pay?”). That made me think up of this illustration of managing risk –
Suppose that you and a stranger are standing on the side of a cliff and that one of you must jump off. Here are the risk responses:
Avoid – Isn’t standing on the edges of cliffs dangerous? I wouldn’t be there in the first place. I would just walk away.
Transfer – You push the stranger off the cliff.
Mitigate – You begin climbing down the face of the cliff.
Accept – The cliff is only 3 feet high and the sand is nice and soft, so you jump off the cliff.
How would you handle this scenario?