Correct!

Not knowing the required number of pages means students do not know what length target to aim at, so they will miss it by writing to few or too many pages. It would just be an accident if some of them wrote the required number of pages.

Businesses face a similar problem. The lack information about expected losses. Without that information, they do not know how to aim at the business risk management goal. That goal is:

Choose defensive measures to minimize the following:

the cost of the defensive measures
+
all the expected business losses with those defensive measures.

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