Risk Compensation: From Face Masks to Credit, Market and Systemic Risk

Risk Compensation: From Face Masks to Credit, Market and Systemic Risk

by Ad Min -
Number of replies: 0

Risk compensation (people adjusting their behavior after some risk mitigation measure has been put in place) can sometimes complicate the utility of risk management efforts. A new blog post discusses the issue, using the debate about face mask effectiveness as an example


Visual representation of risk compensation behavior