What is the ultimate goal of risk management?

The ultimate goal of risk management is to minimize and control unacceptable risks. This involves identifying potential risks that could adversely impact an organization, assessing their likelihood and potential impact, and implementing strategies to mitigate those risks. By doing so, businesses can protect their assets, ensure their operational continuity, and maintain a stable environment for growth.

Minimizing and controlling risks does not mean eliminating them entirely—since risks are inherent in any business operation, it is more practical to manage them effectively. This approach allows organizations to accept certain levels of risk while having strategies in place to address the necessary mitigations for more significant threats. By focusing on unacceptable risks, businesses can allocate resources and attention to areas that could lead to severe consequences, thereby maintaining stability and sustainability in their operations.