J. S. S. (John Stuart Mill's Risk Theory)

J. S. S. (John Stuart Mill's Risk Theory) suggests that individuals or organizations should consider the likelihood and potential impact of risks when making decisions. Mill emphasized that assessing both the probability of an adverse event and its possible consequences helps determine whether taking a certain risk is justified. Essentially, the theory advocates for a rational approach: accept risks only when the expected benefits outweigh the potential harms, encouraging careful analysis rather than reckless action. This concept helps guide decisions in economics, policy, and personal choices, promoting responsible risk management based on thoughtful evaluation.