Which principle of ORM emphasizes that one should accept risk only when the benefits outweigh the costs?

The principle of ORM, or Operational Risk Management, that emphasizes accepting risk only when the benefits outweigh the costs is accurately represented by the choice that states this specifically. This principle is fundamental in decision-making processes where risk assessment plays a critical role. It ensures that any potential advantages gained from taking a risk are thoroughly evaluated against the possible negative outcomes.

In practice, this principle encourages a cost-benefit analysis approach, where individuals and organizations assess whether the anticipated gains justify the risks involved. By applying this principle, decision-makers prioritize safety and operational integrity, ultimately leading to more informed and responsible choices regarding risk. This helps to mitigate unnecessary risks while enabling progress when the potential for benefit is clear and substantial.

The other principles of ORM provide important guidance as well, focusing on minimizing unnecessary risks, planning for risk management, and ensuring decisions are made at appropriate levels of authority. However, the specific focus of accepting risks based on a balanced view of benefits versus costs clearly defines the core rationale for risk acceptance in this context.