Difference between revisions of "Risk Compensation"
From Open Risk Manual
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Latest revision as of 11:28, 11 May 2021
Definition
Risk Compensation denotes a behavioral trait whereby human attitudes to an identified risk may evolve after the application of Risk Mitigation measures.
Issues and Challenges
- The term might be confused with the (financial) compensation for underwritten risk (See e.g. Risk-Adjusted Return on Capital)