Benefits of a Successful Risk Management Program

A.

Successful risk management should lead to a breakeven point of risk reduction and cost.

The other options listed are not achievable.

Threats cannot be totally removed or transferred, while losses cannot be budgeted in advance with absolute certainty.

A successful risk management program should lead to the optimization of risk reduction efforts against cost. This means that the risk management program should aim to reduce risks to an acceptable level while minimizing the cost of implementing risk management strategies. The goal is not to eliminate all risks or to contain losses within a budgeted amount, but rather to find a balance between risk reduction and cost-effectiveness.

The process of risk management involves identifying, assessing, and prioritizing risks, and then developing and implementing strategies to mitigate those risks. The goal is to minimize the impact of potential threats and vulnerabilities on the organization, its assets, and its operations.

Risk management is an ongoing process that requires continuous monitoring and updating as new risks emerge or existing risks change. A successful risk management program should be flexible enough to adapt to changing circumstances and incorporate new information and technologies.

It is important to note that risk management cannot eliminate all risks, as there will always be some level of uncertainty and unpredictability in any organization. However, a well-designed and implemented risk management program can help to minimize the impact of risks and ensure that the organization can continue to operate effectively even in the face of potential threats and vulnerabilities.