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Risk compensation

Description

A theory which suggests that people typically adjust their behavior in response to the perceived level of risk, becoming more careful where they sense greater risk and less careful if they feel more protected.

Risk compensation in business decision

After installing advanced safety features in company vehicles, drivers might exhibit slightly riskier driving behaviors because they feel more protected by the technology.

Risk compensation in personal life decision

You drive faster after putting on a seatbelt because you feel safer.