What is the primary goal of a company's risk management process?

The primary goal of a company's risk management process is to identify, assess, and manage risks. This process focuses on recognizing potential events or circumstances that could negatively impact the organization’s ability to achieve its objectives. By systematically identifying and evaluating risks, a company can develop effective strategies to mitigate or eliminate those risks, thus ensuring greater stability and enabling better decision-making.

Integrating risk management into the organization's overall strategy allows for a proactive approach rather than a reactive one. This is vital for sustainability as it helps ensure that the business can withstand adverse conditions, adapt to changes, and seize opportunities. While increasing market share, minimizing operational costs, or enhancing employee benefits may be important business objectives, they are not the primary focus of risk management. Risk management serves as a foundational aspect that supports the achievement of these broader goals by safeguarding the company’s assets and resources.