The PRIMARY objective of a risk management program is to: A. minimize inherent risk. B. eliminate business risk. C. implement effective controls. D. minimize residual risk.
Correct Answer: D
Explanation:
Explanation:
The goal of a risk management program is to ensure that residual risk remains within manageable levels. Management of risk does not always require the removal of inherent risk nor is this always possible. A possible benefit of good risk management is to reduce insurance premiums, but this is not its primary intention. Effective controls are naturally a clear objective of a risk management program, but with the choices given, choice C is an incomplete answer.
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