Reducing Severity of Loss or Damage

Some actions mitigate the severity of loss or damage, but don’t affect the likelihood of the adverse effect occurring in the first place.


  1. A prenuptial agreement protects assets, but doesn’t save marriages
  2. Flood, earthquake, car, and health insurance will all, after the fact, reverse damage to property and people, but will not reduce the probability of the initial adverse event or damage occurring.
  3. Collateral posted by a borrower will help to reduce a lender’s exposure, but in itself collateral will not make the borrower less likely to default.
  4. Automobile clubs provide coverage in the event a road mishap occurs, but the coverage doesn’t make the initial mishap less likely.
  5. Getting drunk before asking a girl out can reduce the pain of rejection but can’t in itself reduce the likelihood of rejection.
  6. Certain medications, such as penicillin, significantly mitigate the damage caused by various bacterial infections. They don’t however, stop the infections from occurring in the first place.
  7. Wearing a helmet while riding a bicycle can significantly reduce risk of head injury, but helmets are generally not credited with reducing the likelihood of an accident.

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