What should be the basis for making risk decisions?

Making risk decisions should be based on information and experience because it allows decision-makers to leverage both empirical data and the insights gained from past experiences. This approach ensures that decisions are grounded in context and an understanding of the nuances of similar situations.

Utilizing information helps incorporate quantitative data, historical trends, industry standards, and analytical models, providing a robust foundation for assessing risks. Experience complements this by adding a qualitative perspective, drawing on lessons learned, best practices, and understanding the potential implications of various outcomes.

This combination of data-driven insights and practical knowledge enables individuals to make well-rounded, informed decisions that can reduce uncertainty and enhance the effectiveness of risk management strategies.