According to the principles of ORM, when is it acceptable to accept risk?

Accepting risk is a fundamental aspect of Operational Risk Management (ORM) and is considered acceptable when the benefits outweigh the costs. This principle is rooted in the need to make informed and balanced decisions where potential gains justify the risks taken. When evaluating risks, it is crucial to assess not only the likelihood of negative outcomes but also the potential benefits that can be achieved. If the positive outcomes significantly surpass the potential downside, then it is a rational choice to proceed.

Additionally, while considerations such as manageability of risks, unavoidable risks, and orders from higher command might play roles in decision-making, they do not encapsulate the principle of risk acceptance as effectively as the assessment of benefits versus costs does. Emphasizing the balance between risk and reward ensures that decisions are made strategically rather than impulsively, aligning with the overall mission objectives.