The engineering definition of risk is risk neutral. This means that
A) very large risks can always be balanced against other equally large and probable benefits.
B) small risks can always be balanced against other equally small and probable benefits.
C) very large risks can always be balanced against sufficiently many small but improbable benefits.
D) All of the above

Question

Quizplus · Accepted Answer

The engineering definition of risk as being risk neutral implies that risks, regardless of their size, can be balanced against corresponding benefits. This includes very large risks balanced against large benefits, small risks against small benefits, and large risks against many small benefits, as long as the probabilities and impacts align appropriately.

The Engineering Definition of Risk Is Risk Neutral