Risk management primarily involves which of the following actions?

Risk management focuses on the identification, assessment, and prioritization of risks followed by the coordinated application of resources to minimize, monitor, and control the probability or impact of adverse events. Preventing and mitigating risks is at the heart of this practice, as it aims to protect assets, employees, and the organization itself from potential harm. By actively working to anticipate and address risks, organizations can not only safeguard their operations but also ensure stability and continuity in their activities.

Reducing operational costs, increasing staff productivity, and enhancing technology usage may all be beneficial strategies for an organization but they do not encompass the primary focus of risk management, which is to directly address the risks that could threaten the organization’s objectives and performance.