Risk should not be tolerated on a cost-benefit basis.

Question

Quizplus · Accepted Answer

Risk can be tolerated on a cost-benefit basis as long as the potential benefits outweigh the risks involved. Organizations and individuals often take calculated risks in pursuit of their goals or objectives. However, the level of risk tolerance varies based on factors such as the nature of the risk, potential consequences, availability of alternatives, and risk management strategies. Ultimately, it is up to the decision-makers to determine if the benefits justify the risks and whether the risk can be mitigated or managed effectively.

Risk Should Not Be Tolerated on a Cost-Benefit Basis