Which statement about value, outcome, cost, and risk is correct when directing, planning, or improving a service?

OPTIONS

• Removing risk from the consumer is the primary objective of a service
• Costs introduced by the service should be equal to the cost removed from the consumer
• Value cannot be achieved by accepting additional risks
• Value can be created by accepting additional costs

ANSWER

Value can be created by accepting additional costs

EXPLANATION

Value, outcome, cost and risk or VOCR is always a balance struck by the organization’s need and how this aligns with its vision and mission. In some cases, this can include accepting diminished outcomes if the organization views this as creating more value in a particular situation. An organization may, however, choose to accept additional risk, increased costs, or diminished outcomes if doing so will create the possibility of increased value as they choose to measure it. For example, pursuing new and unproven technologies may introduce significantly greater risk, but this may be acceptable if the potential rewards are correspondingly great.