At first glance, the phrase “finding the optimal level of risk mitigation” sounds pretty technical. But, if you think about it, you’ll realize it’s something that all of us do every single day. For example: Do you cross the street against the light, or do you wait for the signal? Crossing against the light is a risk, and your decision about whether or not to do it is probably based on several factors: Are you in a rush to get somewhere? Is it a massive road with multiple lanes, or a quiet side street? Are other people doing it? Depending on the answers to these questions, you’re likely to make different decisions. But either way, whatever your decision: By making it, you just identified what you think is the optimal level of risk mitigation for your specific scenario.
Let’s take another example. I’m a hiker and, as a hiker, I have to decide what level of preparation I need when I go out on the trails. For the highest possible level of risk mitigation, I could max out all the options. 3 days of water, in case I get stuck out there. An oxygen tank, in case I suddenly decide to ascend over 25k feet. A change of clothes, in case I accidentally fall into a river. A flare gun, in case I need to call attention to myself from a distance. A real gun, in case I get attacked by a bear. Well, you get the idea.