Final answer:
The second step of the three-step fear-setting exercise, which involves defining the cost of inaction, is indeed true. This step helps to understand the losses associated with not acting upon a fear or threat.
Step-by-step explanation:
The statement that the second step of the three-step fear-setting exercise is to define the cost of inaction is true.
Fear-setting is a decision-making exercise that helps individuals mitigate the effects of fear by logically evaluating risks and potential outcomes. In fear-setting, calculating the cost of inaction involves assessing the negative outcomes or opportunity costs associated with not taking a particular action. This step helps persons recognize potential losses that can come from avoidance or procrastination.
The asymmetric risk concept illustrated in Figure 20.1 corresponds to fear-setting because it implies the importance of considering both the cost of action (Plan B) and the cost of inaction (Plan A) when addressing potential threats. It depicts that the consequences of inaction could be severe, hence the need for a calculated plan to avoid catastrophic results.