What aspect does risk management focus on during its processes?

Risk management primarily concentrates on identifying, assessing, and prioritizing risks to minimize their impact on an organization. This involves a systematic process of analyzing potential risks that could affect business objectives and implementing measures to control or mitigate these risks effectively. By prioritizing risks, businesses can allocate resources and efforts towards the most significant threats, thereby enhancing their overall risk posture.

The focus on controlling risks rather than solely maximizing returns, cutting costs, or boosting sales performance underscores the fundamental purpose of risk management: to protect the organization from unforeseen events and ensure sustainable operations over time. By managing risks appropriately, a company can create a more stable and secure environment, which indirectly supports other aspects of the business like profitability, efficiency, and growth.