What does the conservative approach prioritize when faced with uncertain outcomes?

The conservative approach prioritizes maximizing the worst-case scenario when faced with uncertain outcomes. This strategy is predicated on the belief that it is better to prepare for the worst possible outcome rather than to risk suffering significant losses due to unforeseen negative events. By focusing on the worst-case scenario, decision-makers ensure that they have a safety net in place and can maintain a level of stability even in adverse conditions.

This approach is especially relevant in situations with high uncertainty and risk because it allows individuals and organizations to develop strategies that minimize potential losses, rather than chasing high gains that may lead to substantial risks. It is a cautious and defensive way of making decisions, which can be particularly important in sectors where the stakes are high, and where the consequences of poor decision-making can be severe.

Other strategies, such as optimizing all options, aiming for average outcomes, or pursuing risk-taking opportunities, do not focus explicitly on safeguarding against the worst outcomes, which is why they do not align with the principles of the conservative approach.