Final answer:
The ORM principle for weighing risks against opportunities and benefits is akin to a Cost-Benefit Analysis, enabling decision-makers to assess if the positive gains outweigh potential negative outcomes, such as in managing asymmetric risks.
Step-by-step explanation:
The Occupational Risk Management (ORM) principle that requests you to weigh the risks against opportunities and benefits to help maximize unit capability is essentially the risk management version of a Cost-Benefit Analysis. This ORM principle suggests that decision-makers should assess the potential negative outcomes (risks) in comparison to the positive gains (benefits and opportunities) when determining the best course of action. An example of this can be seen in the context of asymmetric risk, where the cost of preparing for a low-probability but potentially catastrophic event is compared to the benefit of avoiding a devastating outcome.
By employing Cost-Benefit Analysis in ORM, one can determine whether the benefits of a decision or action justify the potential costs or risks involved. This includes considering opportunity costs, which are the benefits lost by choosing one option over another. Effective risk management requires such considerations to ensure that resources are allocated in a manner that maximizes overall benefit while minimizing potential harm.