Principles of risk decision-making

Figures & data

Table 1. Principles of Risk Decision-making

Principle	Description
P1.Risk-based decision-making	Risk management resources should be allocated in proportion to the magnitude of established risks that are amenable to mitigation.
P2.Precautionary principle	Where the potential consequences are great, uncertainty should not prevent risk management actions.
P3. Balancing risks and benefits	Where appropriate, risks may be taken in light of offsetting benefits.
P4. Cost-effectiveness	Risk reduction actions should be taken in a cost-effective manner, in order to achieve the maximum return on investment of risk management resources.
P5. Risk tolerance	Efforts should be made to reduce risks to the point where they are considered tolerable.
P6. Zero risk	In most cases, the ultimate goal of zero risk will not be attainable.
P7. Risk equity	Unavoidable risks should be shared in an equitable manner, and not disproportionately borne by specific groups or individuals.
P8.Stakeholder engagement	All stakeholders should be afforded an opportunity to participate in the process of risk management decision-making.
P9.Openness and transparency	Risk management decisions should be taken in an open and transparent manner, with the basis for the decision clearly and explicitly stated.
P10. Flexibility	Risk management decisions should be flexible, and subject to review as new information becomes available.

Figure 1. Application of risk-decision principles in different risk decision contexts.