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Decision Criteria Risk 1.

Risk criteria allow a business to clearly define what level of risk the organization is prepared to accept for a particular event or activity. They are used to determine whether a specified level of risk is acceptable or tolerable. A sound knowledge of these factors will affect the decision on what constitutes an unacceptable risk, as they will show:

an organizations operational limits, budget constraints and ability to cover

financial loss

legal requirements and potential cost and impact of fines humanitarian or moral aims Impact of reputation loss on the organizations ability to continue to operate.

Cost - Do the benefits justify the costs? - Is the approach the least costly or least burdensome option that achieves clearly defined objectives? Effectiveness Effectiveness is often used as a criterion by which to judge policy proposals. Effectiveness is the extent to which the proposed policy will attain the goals set forth in the problem statement. Political Criteria Political viability asks whether or to what extent a proposed policy alternative will be acceptable to relevant powerful groups, decision makers, legislators, administrators, citizens, neighborhoods, unions, or others.