Question

2. Think of a risk response plan that you have in your personal life, such as automobile, homeowner’s, or renter’s insurance.

What were some of the decision criteria that influenced your decision about how much coverage to purchase?

How does your decision-making process compare to that of an organization determining risk mitigation strategy for a project?

Answer 1

I would suggest you considered the following:
cost
time
going to jail
being sued
losing friends
disrupting relationships
ego deflation
ego enhancement

So do the assignment, it is clear.