This is an excellent observation. I guess it is difficult to assess probabilities in "new" problem domains, where little information exists.

I think there is a problem in most B-schools in that they seem to be teaching "risk avoidance" rather than "risk management".

I think risk avoidance (also read as "risk elimination") is a contributing factor to our (currently) sick American economy. Of course, another contributing factor to embrace of risk elimination was the "irrational exuberance" of the 1990's and dotcom era when it was "impossible to fail".

I still shake my head at the investment advisers who heralded the period as technology having changed the rules of economics.