I found this great piece on strategy to stay safe while on your bike. Here is the short version of full version on Commute by Bike.
* Scan - Constantly scan the environment around you. If you focus on only one thing, like a pedestrian crossing the street, you may miss other hazards like the person getting ready to open their car door next to you.
* Identify - As you’re scanning, identify all the potential hazards. “Filter out the noise”, and identify what’s important. Don’t forget to identify potential problems approaching from the rear as well!
* Predict - You’ve identified the potential hazards, now predict what the outcomes will be if certain scenarios play out. Focus on the worst case scenarios. You may be able to swerve around a pedestrian, but probably won’t survive tangling with a garbage truck. Prioritize accordingly.
* Decide - Decide on a course of action that you would follow, should one of the scenarios you predicted plays out.
* Execute - Execute the course of action you decided on.