What practice focuses on balancing risk and opportunity in business decisions?

The correct choice emphasizes the concept of risk management, which is a systematic approach to identifying, assessing, and prioritizing risks followed by the coordinated efforts of applying resources to minimize or control the probability and impact of unfortunate events while maximizing opportunities.

In a business context, effective risk management considers both the potential threats and the opportunities that may arise from uncertainties in the business environment. This practice involves creating strategies that align with the company's goals, ensuring that the business can achieve its objectives while maintaining an acceptable level of risk exposure.

By systematically evaluating various risks and their potential impacts on operations, markets, and profitability, businesses can make informed decisions that balance risk and opportunity, leading to sustainable growth and success. This approach is essential in navigating complex business landscapes where market conditions can change rapidly.