Final answer:
The statement "You are more likely to control risks when they are identified earlier rather than later" refers to the proactive risk management principle, which advocates for early risk identification and prevention to mitigate potential repercussions.
Step-by-step explanation:
The statement, "You are more likely to control risks when they are identified earlier rather than later" is associated with the proactive risk management principle. This principle emphasizes the importance of early identification and assessment of potential risks to reduce and control their impact on projects, operations, or business strategies. It aligns with the concepts detailed in Prospect Theory: An Analysis of Decision under Risk by Daniel Kahneman and Amos Tversky, which analyzes how people make decisions in uncertain conditions. Essentially, identifying risks early on provides the opportunity to implement preventive measures, mitigating the risk before it becomes a bigger issue and possibly avoiding catastrophic outcomes.
Furthermore, tools like "iprofile" can assist in determining an individual's risk management profile, guiding them toward better strategies for dealing with potential risks. The concept is also related to behaviors such as purchasing insurance, which is done to protect against low-probability but high-impact events, much like adopting Plan B in the face of asymmetric risk, as outlined by the provided references.
The idea of managing risks by recognizing and addressing them promptly is fundamental in economic contexts as well, where individuals or businesses might face economic risks from events like natural disasters or wars. Keeping these principles in mind helps ensure more effective risk mitigation strategies and better outcomes.