The MOST important function of a risk management program is to:

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  • Post last modified:December 21, 2021
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Last Updated on December 21, 2021 by Admin

The MOST important function of a risk management program is to:

  • quantify overall risk.
  • minimize residual risk.
  • eliminate inherent risk.
  • maximize the sum of all annualized loss expectancies (ALEs).
Explanation:
A risk management program should minimize the amount of risk that cannot be otherwise eliminated or transferred; this is the residual risk to the organization. Quantifying overall risk is important but not as critical as the end result. Eliminating inherent risk is virtually impossible. Maximizing the sum of all ALEs is actually the opposite of what is desirable.
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