Risk Management With Ant And Grasshopper

Reviewed by Editorial Team
The ProProfs editorial team is comprised of experienced subject matter experts. They've collectively created over 10,000 quizzes and lessons, serving over 100 million users. Our team includes in-house content moderators and subject matter experts, as well as a global network of rigorously trained contributors. All adhere to our comprehensive editorial guidelines, ensuring the delivery of high-quality content.
Learn about Our Editorial Process
| By Dfiggen
D
Dfiggen
Community Contributor
Quizzes Created: 1 | Total Attempts: 427
| Attempts: 427
Quiz Flashcard
SettingsSettings
Please wait...
  • 1/5 Questions

    Who does better at managing risk?

    • The Ant
    • The Grasshopper
Please wait...
About This Quiz

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.

Risk Management With Ant And Grasshopper - Quiz

Quiz Preview

  • 2. 

    What is the biggest risk for Ant and Grasshopper during winter?

    • Winter cold

    • Starvation from food shortage

    • Short days

    • Naturals disasters, e.g. snowstorms

    Correct Answer
    A. Starvation from food shortage
    Explanation
    The biggest risk is the shortage of food, which is the central point of the story. Cold certainly is an additional risk, and snowstorms might also be a risk, but we don't know much about the climate in which Ant and Grasshopper are living.

    Rate this question:

  • 3. 

    Let us try to understand the effect of saving food during summer. By not using all his food in summer...

    • ... the Ant averages the impact of the risk over time.

    • ... the Ant increases the amount of food.

    • ... the Ant increases the quality of food.

    • ... the Ant stays fit and in shape.

    Correct Answer
    A. ... the Ant averages the impact of the risk over time.
    Explanation
    The total amount of food does not change through saving up in summer. If the storing of food would increase or decrease its quality will depend on the type of food. The risk management effect is the averaging of the impact of the risk over time: The Ant saves in times of surplus for a time of shortage, in this way ensuring a constant supply of food.

    Rate this question:

  • 4. 

    How does the Ant manage the risk?

    • By taking an insurance

    • By working hard

    • By preparing for the risk event

    • The Ant didn't mange risk, he just was lucky

    Correct Answer
    A. By preparing for the risk event
    Explanation
    The Ant certainly didn't survive by luck only. Also, working does not in itself manage risk: If the Ant had worked hard, but used all his earnings in summer, he would be in the same situation as the Grasshopper. It is his preparation for the very likely risk event, i.e. winter and its food shortage, that keeps the Ant safe here. The Ant could also have taken an insurance from a third party, which then could supply him with food in the situation of a crisis.

    Rate this question:

  • 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?

    • Lack of information or knowledge

    • Overconfidence

    • Procrastination

    • Short-term thinking

    Correct Answer
    A. Short-term thinking
    Explanation
    The main reason which prevented the Grasshopper from also implementing a risk management strategy was his short-term thinking: "Won't be winter till... the winter. It's summer now. Why worry about the winter?" He might also show overconfidence and underestimate the severity of winter (which poses a threat to his life) or lack the knowledge about this severity. Procrastination, i.e. delaying actions, does not play a role here, since the Grasshopper never intended to take any action.

    Rate this question:

Quiz Review Timeline (Updated): Mar 21, 2023 +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Mar 21, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Jul 12, 2014
    Quiz Created by
    Dfiggen
Advertisement
×

Wait!
Here's an interesting quiz for you.

We have other quizzes matching your interest.