Comment by fc417fc802

Presumably if it's due to negligence (ie intentional lack of investment) it will happen again if the underlying issue isn't fixed. So you have to factor that in.

If it happens repeatedly presumably the percentage will go up.

I think the only way this gets written off is if saving the money opens you up to such a low level of additional risk that you don't reasonably expect the event to happen more than once (if ever). But if the risk level is actually that low (I don't believe this to be the case, just playing out a hypothetical here) then arguably they wouldn't be in the wrong.

To put this in regular person terms, 3% of a 6 figure salary is $3k. That's more than enough to get most people's attention.