What is the primary function of a risk management framework? 🔊
The primary function of a risk management framework is to identify, assess, and mitigate risks within an organization. It provides a structured approach to understanding potential threats and vulnerabilities that could impede the achievement of business objectives. By establishing policies, procedures, and methodologies, a risk management framework enables organizations to prioritize risks, allocate resources effectively, and implement strategies to minimize adverse impacts on operations and reputation.
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