Table B.1 in our textbook outlines a table/tool that helps to quantify different dimensions of risk capacity and risk appetite.
Develop your own risk appetite overview for a major event of your choosing in your personal life (see section labeled ‘My major event’ near the bottom of these instructions for my chosen event). Examples might be:
-Moving to a new area of the country for a better job
-Angling for a new promotion
-Deciding whether or not to make the military a full 20 year career
-Choosing to spend money and time pursuing a 4 year undergraduate degree, etc…
In your analysis include the following three items:
1. A description of the overall risk scenario.
2. A quantified determination of the risk expressed in dollars.
3. A description of the impact of this risk.
Finally, in your conclusion to the analysis address whether or not the risk is worth taking (in other words, what is your risk appetite)?
Your analysis should be at least 750 words.
Assigned Reading & Preparation Activities:
Read:
-Strategic Risk Management (author: Paul Godfrey), Chapter 9 and Appendix A & B
View video: General Robert Spalding: Will America Be Able to Remain Global Superpower?1 (7 min) – https://www.youtube.com/watch?v=dvREQdszJWs
View Video: Challenges to China’s rise, with Michael Beckley2 (32 min) – https://www.youtube.com/watch?v=Erxmf4_S3p4
