Final answer:
Risk management offers organizations economic benefits by saving more than the cost of implementation, reduces crime by increasing the opportunity costs for potential offenders, and provides insurance incentives through lower premiums for mitigating potential risks.
Step-by-step explanation:
Organizations that implement risk management strategies can enjoy several benefits by reducing the deterrence effects. First, there is a direct economic benefit; by investing in prevention measures, such as education and better living conditions, organizations can achieve a high benefit-cost ratio, which means that for every dollar spent, several more are saved in prevented costs. Secondly, risk management helps in reducing crime rates, particularly when it creates higher opportunity costs for potential offenders, leading to societal benefits such as safer communities and lower expenses related to crime. Thirdly, organizations can benefit from insurance incentives, as insurance companies may provide lower premiums for businesses that take active measures to mitigate risks, such as installing security and fire sprinkler systems that are regularly inspected.