In risk management, we need to realize that all things in this world always have the risk for damage, including ourselves. Therefore, we need to analyze any kind of risks that exist, how much chance the risk is incurred, and how big losses will be experienced. For the risks that could cause large losses or have a high chance, we need to prepare the plan in anticipation for our regular lives do not get too much disturbed when something happen in the future.
For example, consider the following story:
James is a manager in a private company that is quite popular in Jakarta. He was married and has 2 children. Every day James drove his car to go to the office.
One day, the disaster came upon James. Sedan car which was hit by a bus driven a red light violation. Cars James suffered severe damage while James himself falls unconscious, so immediately rushed to the hospital.
Apparently injuries suffered by James quite severe. During the week James was in a coma, unconscious. Once aware, James still has to be treated staying in hospital for two weeks and after that James health must be checked every week. While the hand that had a broken bone can not be used to work for 3 months.
The company where James works feel sorry for what had happened to James. They sent flowers and visited James at the time in the hospital. But because James can not work in 3 months, they decided to dismiss James.
