It's not a high enough priority for them. People might occasionally think about low likelihood, high impact events. But they rarely make a detailed plan for how to reduce the risk.

"Risk management" is not just for projects and organizations. If you're a parent you probably do risk assessments (https://teamsuccess.io/risk) every day, without realizing it. And ultimately, just like managers, you too as a parent, are ultimately responsible for managing risks. :)