According to ORM principles, when should risks be accepted?

The principle of accepting risks in Operational Risk Management (ORM) revolves around a cost-benefit analysis that evaluates whether the advantages of a particular action or decision surpass the associated risks. Accepting risks becomes justifiable when the potential benefits—such as achieving a mission's objectives, enhancing operational capability, or improving efficiency—are deemed greater than the liability or costs incurred from those risks.

This approach encourages decision-makers to weigh the positive outcomes against the possible negative impacts, allowing for informed choices that consider both operational effectiveness and safety. ORM does not advocate for the complete elimination of risks in every situation, as that is often impractical; instead, it promotes a practical approach to risk management that embraces calculated risk-taking.

While managing risks is essential, it isn't always feasible or necessary to eliminate every potential risk, which means options focused solely on complete elimination or assuming risks based solely on experience do not align with ORM principles. The notion of managing risks suggests that decisions should be made with consideration of how controllable and significant the risks are rather than on a blanket assumption that risk-taking is always acceptable. Thus, the focus on the benefit-to-cost relationship underlies the rationale for risk acceptance in this context.