What is the primary objective of risk management?

The primary objective of risk management is to identify, assess, and prioritize risks followed by coordinated efforts to minimize, monitor, and control the probability or impact of unfortunate events. Focusing on reducing the degree of likelihood of illness from exposure aligns well with the core purpose of risk management, which is to protect individuals and organizations from potential harm or loss. In a broader context, risk management encompasses making informed decisions to mitigate risks effectively rather than attempting to eradicate them entirely.

Options that suggest increasing vulnerability or completely eliminating threats do not align with the realistic goals of risk management. The approach is not about eliminating all risks, as this is often impractical or impossible; instead, it is about managing and reducing risks to acceptable levels. Analyzing costs can be a part of the risk management process, but it is not the primary objective. Financial considerations are essential, but they serve to inform decision-making rather than define the essence of risk management itself.