IAWYC, but in general the right thing to do is to reduce the risk until the marginal cost of reducing it more exceeds the disutility of what one is risking:
Not necessarily. The reduction may have positive value in absolute terms, but carry the opportunity cost of preventing you from devoting those resources to more valuable risk reductions.
I don’t think you’ve just disagreed. When I say something has a marginal cost of $2.50, that doesn’t mean I’m considering the sadness inherent in having fewer shiny metal discs and green pieces of paper, it means there’s some opportunity cost which that money could have afforded which I would instead have to forgo.
Not necessarily. The reduction may have positive value in absolute terms, but carry the opportunity cost of preventing you from devoting those resources to more valuable risk reductions.
I don’t think you’ve just disagreed. When I say something has a marginal cost of $2.50, that doesn’t mean I’m considering the sadness inherent in having fewer shiny metal discs and green pieces of paper, it means there’s some opportunity cost which that money could have afforded which I would instead have to forgo.