Discretion (noun)

1. The quality of being able to make wise and appropriate decisions based on careful consideration.
2. The freedom or power to choose between alternatives, especially in a responsible manner.
3. The ability to judge what is appropriate, proper, or suitable in a given situation.

Origin:

From latin discretio, meaning a separating, distinguishing, or judging.

Examples:

1. The manager was praised for her discretion in handling the delicate situation.
2. The lawyer advised his client to use discretion in the public statements.
3. The employee was given discretion to choose the most effective methods for the task.
4. The teacher used her discretion in grading the students' work.
5. The doctor exercised discretion in revealing the patient's condition.