But is it just protecting the organization, as one is typically paid to do, or is it an "irrational" decision? Science and math cannot tell you what the "correc

But is it just protecting the organization, as one is typically paid to do, or is it an "irrational" decision? Science and math cannot tell you what the "correct" decision is without some reference goals, and the reference goals are probably subjective. The most objective such can be that I can see is giving estimated probabilities to the owners of a company or org. Example: "Insurance policy X will reduce our estimated profits by 20%, but will also reduce our chance of going bankrupt in the next five years by 15%". Whether the owners/stakeholders want that trade-off is up to them. The universe otherwise doesn't "care" what your trade-off preferences are.