What does risk management aim to achieve?

Risk management primarily aims to identify and control potential risks that could negatively affect an organization's operations, finances, or reputation. By systematically assessing risks, businesses can implement strategies to mitigate them before they turn into significant issues. This proactive approach not only aids in safeguarding assets and ensuring compliance with regulations but also fosters an environment where informed decision-making can occur.

While maximizing revenue, increasing market share, and enhancing customer satisfaction are important business objectives, they are not the primary focus of risk management. Instead, these objectives can be supported by effective risk management practices; however, the core purpose remains centered on understanding, assessing, and managing risks. Hence, identifying and controlling risks is crucial for creating a stable foundation for achieving broader business goals.