Which statement about risk-based decision making is true?

Which statement about risk-based decision making is true?

• A. It uses only historical data.
• B. It prioritizes actions strictly by cost.
• C. It ignores severity and probability.
• D. It uses probability and severity of risk to life and property to prioritize resources.

Answer: (D)

Risk-based decision making weighs both how likely a risk is and how severe its consequences could be. By combining probability with the severity of risk to life and property, it helps determine where to allocate limited resources to achieve the greatest safety benefit. In practice, this means prioritizing actions that address the highest risk, not simply those with the lowest cost or the most historical incidents. The statement that uses probability and severity to prioritize resources is the correct description of risk-based decision making. Using only historical data misses current risk levels and future threats. Prioritizing solely by cost ignores how serious a risk could be. Ignoring both severity and probability fails to distinguish between minor and major risks.

Risk-based decision making weighs both how likely a risk is and how severe its consequences could be. By combining probability with the severity of risk to life and property, it helps determine where to allocate limited resources to achieve the greatest safety benefit. In practice, this means prioritizing actions that address the highest risk, not simply those with the lowest cost or the most historical incidents. The statement that uses probability and severity to prioritize resources is the correct description of risk-based decision making. Using only historical data misses current risk levels and future threats. Prioritizing solely by cost ignores how serious a risk could be. Ignoring both severity and probability fails to distinguish between minor and major risks.