According to the Risk Proportionality Principle, what should the fear of harm be based on?

The correct answer is based on the understanding that the Risk Proportionality Principle emphasizes the need to assess both the likelihood of harm occurring and the potential severity of that harm. This principle asserts that an evaluation of risk must not only consider how likely it is that an event will occur but also how serious the consequences would be if that event did happen.

When assessing risks, organizations need to calculate a balanced view that incorporates both these aspects. Simply focusing on the likelihood of harm (as suggested in one of the other options) overlooks the potential impact of even low-probability events which could lead to catastrophic outcomes. Similarly, considering only the severity without factoring in likelihood can lead to unnecessary resource allocation to highly impactful but very improbable events.

By weighing both severity and likelihood, organizations can make informed decisions about risk management strategies, ensuring that resources are allocated appropriately to mitigate risks that pose the greatest threats. This comprehensive evaluation aligns with the essence of the Risk Proportionality Principle, making the answer correct and relevant in establishing a solid risk management framework.