The ABC’s of High-Stakes Decisions

Mark Jablonowski

Chapter 2 in Precautionary Risk Management, 2006, pp 17-37 from Palgrave Macmillan

Abstract: Abstract Attention to the immediate can obscure rare, but significant events, that can have absolutely dire consequences should they occur. The statistical approach supposes that the risks we face present themselves within a relatively short time horizon. At least short enough that the statistical calculations, based on previous history, make sense. In fact, most of the significant risks we face have a fairly low probability of occurrence, and hence, may not be amenable to analysis using statistical methods. This means we need to use specialized decision criteria for dealing with high-stakes risk.

Keywords: Risk Aversion; Loss Event; Decision Matrix; Precautionary Approach; Short Time Horizon (search for similar items in EconPapers)
Date: 2006
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-62765-9_2

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DOI: 10.1057/9780230627659_2

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