The subjective nature of risk and how individuals perceive it differently based on factors like control, experience, and personal circumstances. The video emphasizes that risk is not simply objective and quantifiable but is influenced by personal biases, societal influences, and the media's portrayal of risk. It uses numerous examples to illustrate this point, such as the fear of flying versus driving, the perception of certain chemicals and industries, and the impact of accident history. The video then introduces the concept of risk management, exploring the role of insurance and engineering in mitigating risk and ultimately emphasizing the importance of understanding and managing risks effectively.

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