What is the purpose of risk management?

The purpose of risk management is to identify, assess, and prioritize risks and then develop strategies to manage or mitigate those risks. The goal is to minimize the negative impacts of potential events and increase the likelihood of achieving objectives. This helps organizations protect their assets, achieve their goals, and ultimately, improve their overall performance. Risk management is especially important in industries such as finance, healthcare, and construction, where the consequences of a risk event can be severe.

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