The LessWrongy framework I’m familiar with would say that value = expected utility, so it takes potential downsides into account. You’re not risk-averse wrt your VNM utility function, but computing that utility function is hard in practice, and EV calculations can benefit from some consideration of the tail-risks.
This is a slightly tangential question, but is value generally accepted as being inclusive of risk?
The LessWrongy framework I’m familiar with would say that value = expected utility, so it takes potential downsides into account. You’re not risk-averse wrt your VNM utility function, but computing that utility function is hard in practice, and EV calculations can benefit from some consideration of the tail-risks.