Risk Management With Ant And Grasshopper

5 Questions | By Dfiggen | Updated: Mar 21, 2022 | Attempts: 384

One of the best ways in which you can understand a concept is the use of perfect examples. Have you read the story of the ant and the grasshopper? These two animals have a thing or two to teach on risk management. Try and read the story and see what you got on risk management from the story by taking the quiz below.

Questions and Answers

1.

What is the biggest risk for Ant and Grasshopper during winter?
- A.
  
  Winter cold
- B.
  
  Starvation from food shortage
- C.
  
  Short days
- D.
  
  Naturals disasters, e.g. snowstorms
2.

Who does better at managing risk?
- A.
  
  The Ant
- B.
  
  The Grasshopper
3.

How does the Ant manage the risk?
- A.
  
  By taking an insurance
- B.
  
  By working hard
- C.
  
  By preparing for the risk event
- D.
  
  The Ant didn't mange risk, he just was lucky
4.

Let us try to understand the effect of saving food during summer. By not using all his food in summer...
- A.
  
  ... the Ant averages the impact of the risk over time.
- B.
  
  ... the Ant increases the amount of food.
- C.
  
  ... the Ant increases the quality of food.
- D.
  
  ... the Ant stays fit and in shape.
5.

Now let's have a look at the Grasshopper. There are several known problems and behavioral biases that prevent people or communities from implementing a risk management strategy. Which of those did the Grasshopper show most strongly in our story?
- A.
  
  Lack of information or knowledge
- B.
  
  Overconfidence
- C.
  
  Procrastination
- D.
  
  Short-term thinking