In risk management, which principle states that risk allowed increases with benefit?

• A. Balancing
• B. Technology-Based
• C. Eye Hazards
• D. Mutagens

Answer: (A)

Balancing risk and benefit is what this principle is about. In risk management, decisions hinge on weighing potential gains against possible harms. When the expected benefit is large, higher risk can be acceptable because the payoff justifies it. If the benefit is small, risk should be kept low. This trade-off guides how much risk is tolerated in different situations. For example, pursuing a life-saving therapy with strong efficacy might justify greater uncertainty or risk than a small, cosmetic improvement. Other choices describe specific hazards or unrelated ideas, not the overall decision framework of adjusting risk tolerance based on expected benefit.