5. Take the action that produces the least harm or the least potential cost (risk aversion principle).
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5. Take the action that produces the least harm or the least potential cost (risk aversion principle). Some actions have extremely high failure costs of very low probability (e.g., building a nuclear generating facility in an urban area)
or extremely high failure costs of moderate probability (speeding and automobile accidents). Avoid actions that have extremely high failure costs; focus on reducing the probability of accidents occurring.
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Related Book For
Management Information Systems: Managing The Digital Firm
ISBN: 9780135191798
16th Edition
Authors: Kenneth Laudon, Jane Laudon
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