"Risks and Controls Exam 2 Practice 2025 – Your All-In-One Resource to Master Exam Success!"

Risk management primarily aims to protect organizations from potential losses and threats. This process involves identifying, assessing, and prioritizing risks followed by the coordinated application of resources to minimize, control, and monitor the impact of these risks on the organization. Through effective risk management, organizations can safeguard their assets, ensure continuity of operations, and enhance decision-making by focusing on the potential adverse effects of various threats, such as financial losses, legal liabilities, and reputational damage. This proactive approach is essential for maintaining stability and promoting resilience within the organization's overall strategy.

In contrast, increased employee benefits, increased shareholder value, and high market share, while important objectives for an organization, are not the primary focus of risk management. These aspects can be influenced positively by effective risk management but do not encapsulate the core mission of identifying and mitigating risks.