If asteroid risk is 1⁄1,000,000, how are you thinking about a 0.01% reduction? Do you mean 0.01pp = 1⁄10,000, in which case you’re reducing asteroid risk to 0? Or reducing it by 0.01% of the given risk, in which case the amount of reduction varies across risk categories?
The definition of basis point seems to indicate the former.
If asteroid risk is 1⁄1,000,000, how are you thinking about a 0.01% reduction? Do you mean 0.01pp = 1⁄10,000, in which case you’re reducing asteroid risk to 0? Or reducing it by 0.01% of the given risk, in which case the amount of reduction varies across risk categories?
The definition of basis point seems to indicate the former.
a 0.01% total xrisk reduction will be 0.01%/(1/1,000,000) = 100x the reduction of asteroid risks.
Sorry, I just mean: are you dealing in percentage points or percentages?
Percentage points.