What does risk management aim to do within an organization?

Risk management aims to efficiently mitigate potential problems within an organization by identifying, assessing, and prioritizing risks followed by coordinated efforts to minimize, monitor, and control the probability or impact of unfortunate events. This process is essential for maintaining operational stability and ensuring that the organization can achieve its objectives without facing significant disruptions from unforeseen issues.

While generating more sales, expanding market reach, and reducing legal liabilities may also be important goals for an organization, they do not directly align with the core purpose of risk management. The primary focus of risk management is to safeguard the organization against potential threats, ensuring that it can operate smoothly and sustain its activities despite uncertainties. By addressing risks systematically, organizations can protect their resources, maintain reputation, and foster a secure environment that supports overall business goals.