Coping strategy

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A means of dealing with a risk, situation or unwanted outcome. These fall into a few categories:

• Risk management: Practical things you can do each day to minimise the probability of unwanted events which could be catastrophic, coming close to happening in the first place: Hire experts. Don’t do risky stuff. Avoid concave risks. Monitor your clients. Be watchful.
• Limits: Mines, defences and bear-traps you can set to scare off bad things if they do come to close: Margin, security, risk limits
• Enforcement: Airbags, roll-bars, inflatable life-rafts and avalanche kits that kick in once bad things have happened: Close-out rights, events of default, indemnities.
• Exoneration: means by which you, personally, avoid being blamed for things that did happen and were catastrophic. Disclaimers, disclosures, weasel wording.

The cost of these is inversely proportional to their usefulness.