Final answer:
Weighing risks against benefits and value demonstrates the Risk Management principle of Balancing, similar to how people buy insurance to mitigate potential risks. The correct option is d.
Step-by-step explanation:
Weighing risks against benefits and value is an example of applying the principle of Balancing in Risk Management.
When one weighs the potential negative outcomes against the positive benefits and overall value, they are balancing the need to mitigate risk with the desire to achieve certain beneficial outcomes.
This is akin to the way people purchase insurance; they evaluate the low-probability, yet potentially devastating events and decide it's worthwhile to mitigate that risk.
Just as mentioned, taking the threat seriously and planning to mitigate it results in little harm if it doesn't materialize, whereas ignoring the threat could have catastrophic consequences. The correct option is d.