When could risks be accepted?

Accepting risks is a common practice in risk management, particularly when the cost of mitigation is greater than the potential loss associated with the risk. This scenario arises when the price of implementing safeguards or controls surpasses the value of the asset at risk. Organizations may find it more financially viable to accept the risk rather than invest heavily in protective measures that don’t proportionately reduce the risk.

In situations where the mitigation cost exceeds the asset value, it can make business sense to tolerate the risk, understanding the potential impact if a loss were to occur. This approach is often documented in risk assessments and requires a clear understanding of both the values involved and the context of the risks.

While the other scenarios suggest conditions under which risks might be accepted, they don't provide a solid framework for decision-making about risk acceptance like the first option. For instance, the absence of potential loss or unmanageable risks doesn't inherently imply acceptance; rather, they suggest a need for different strategies. Similarly, regulatory compliance necessitates adherence rather than acceptance, as risks that exceed compliance standards usually require mitigation to avoid penalties or other consequences.