Many executives will save an organiations money by not having auto insurance on the fleet of company vehicles, whereas, in their personal finances, they will carry insurance on their family car. Take something from your experience that illustrates the diffeence in attitude from the point of view for an individual to an organization. Explain why the organization attitude toward risk is different from the individual attitude.

Take a shot, what do you think?

Hint: consider the very nature of a "fair" insurance policy, where the sum of the premiums is equal to the sum of the payouts plus admin costs.