Which statement is true regarding risk management?

The statement that the person must balance risk with potential benefits is accurate because effective risk management involves assessing the potential risks associated with a situation or decision and weighing them against the possible benefits. This approach acknowledges that while risk can be a negative factor, it is often a necessary aspect of pursuing beneficial outcomes. For instance, taking calculated risks can lead to innovative solutions, personal growth, or improved services, showing that some degree of risk is essential for progress.

This balancing act requires a thoughtful consideration of various factors, including the likelihood of adverse outcomes and the magnitude of potential positive impacts. Recognizing that risks can sometimes lead to advantageous results is crucial in decision-making processes across various contexts, such as social work, healthcare, and business.