Which of the four principles does this fall under so I can explain it to them?
Understand the Problem
The question is asking for clarification on the categorization of a specific principle regarding risk management. It is concerned with how to properly identify which of the four principles a given response pertains to in order to provide a clear explanation to someone else.
Answer
Accept risk when benefits outweigh the cost, Accept no unnecessary risk, Anticipate and manage risk by planning, Make risk decisions timely and appropriately.
The four principles mentioned in the context of operational risk management are: 1) Accept risk when benefits outweigh the cost, 2) Accept no unnecessary risk, 3) Anticipate and manage risk by planning, and 4) Make risk decisions in the right time at the right level.
Answer for screen readers
The four principles mentioned in the context of operational risk management are: 1) Accept risk when benefits outweigh the cost, 2) Accept no unnecessary risk, 3) Anticipate and manage risk by planning, and 4) Make risk decisions in the right time at the right level.
More Information
These principles are commonly used in various fields, such as military and business, to effectively manage potential risks and ensure objectives are achieved with minimal unforeseen consequences.
Tips
A common mistake is mixing these principles with ethical or other unrelated principles. Ensure to contextualize risk management principles specifically.
Sources
- Operational risk management - Wikipedia - en.wikipedia.org
- Four Principles of Operational Risk Management - winapps.umt.edu
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