High Frequency, Low Risk Events vs. Low Frequency, High Risk Events: The Importance of Preparedness

In the realm of risk management and preparedness, businesses and organizations often find themselves at a crossroads: how to allocate time, resources, and attention between high frequency, low risk events and low frequency, high risk events. This dilemma is not just a matter of strategy; it speaks to the very core of an organization’s resilience and ability to respond to crises.
PTP Blog 3-18-25 - Preparedness

The Training and Preparation Dilemma

Reflecting on past experiences, particularly when grant funding was abundant, it’s evident that organizations invested significantly in training and preparing for emergencies. Active drills, stockpiling supplies, and ongoing education were the norm. However, when the flow of grant money dried up, so too did the motivation to maintain these vital preparedness practices. This raises an important question: Did the actual threat diminish, or did the willingness to prepare simply wane with the loss of financial support? 

The reality is that threats do not cease; they evolve. An organization’s commitment to preparedness should not hinge solely on available funding or the allure of monetary incentives. Instead, it should be grounded in a comprehensive understanding of risk that includes both high frequency, low risk events and low frequency, high risk events. 

Understanding Risk Allocation

In many cases, businesses prioritize actions that are either mandated or that occur frequently, often overlooking the more dangerous low frequency events that could have catastrophic consequences. This can lead to a false sense of security. For example, while it might be tempting to focus on daily operational risks that are more manageable, neglecting to prepare for rare but severe incidents can leave organizations vulnerable when the unexpected occurs. 

A Call for Examination

This is a critical time for all organizations, including government entities, to conduct a thorough examination of their risk management strategies. Are we too focused on short-term gains or the latest technological advancements while neglecting the foundational aspects of preparedness? The answer to this question could determine an organization’s future resilience. 

Building a Culture of Preparedness

To foster a culture of preparedness, organizations should: 

Assess Risks Holistically

Evaluate both high frequency, low risk events and low frequency, high risk events. Develop strategies that address the full spectrum of risks. 

Invest in Training Continuously

Regardless of funding sources, prioritize ongoing training and drills. This ensures that staff are prepared for any situation, not just the ones that are most likely to occur. 

Focus on cross-incident training

Maximize your training efforts by finding training topics that are present in both types of incidents. A complex incident is really just a bunch of simple incidents put together. 

Encourage Resilience

Shift the organizational mindset from reactive to proactive. Encourage teams to think critically about potential risks and develop robust contingency plans. 

Engage Stakeholders

Involve all levels of the organization in discussions about preparedness. This not only builds awareness but also fosters a collective responsibility for risk management. 

Seek Alternative Funding

Explore different avenues for funding preparedness initiatives, such as partnerships, grants, or community programs. 

In conclusion, the dichotomy of high frequency, low risk events versus low frequency, high risk events is not just a theoretical discussion—it’s a practical consideration that can shape the future of any organization. By prioritizing preparedness, regardless of financial incentives, we can build resilient institutions ready to face whatever challenges lie ahead. 

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