The Cost-Benefit Analysis Triangle

The Cost-Benefit Analysis Triangle helps evaluate decisions by balancing three key elements: costs, benefits, and risks. Imagine it as a triangle where each point represents one of these elements. Costs are what you give up, benefits are the advantages gained, and risks are uncertainties that could affect outcomes. By analyzing these three aspects together, individuals and organizations can make informed choices that maximize benefits while minimizing costs and risks, ultimately leading to better decision-making in both personal and professional contexts.