While value delivery focuses on the creation of value, risk management focuses on which of the following?
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A. B. C.B.
Risk management focuses on the preservation of value. It involves identifying potential risks that could prevent an organization from achieving its objectives or realizing value, and then taking steps to mitigate or manage those risks.
Preservation of value is a critical aspect of risk management because it ensures that the value that has been created is not lost due to unforeseen events or circumstances. By managing risks, organizations can minimize the negative impact of risks on their objectives and maximize the chances of achieving value.
Value delivery, on the other hand, focuses on the creation of value. This involves identifying opportunities to create value, defining the value proposition, and designing and implementing solutions that deliver the value. Value delivery is closely linked to risk management because the creation of value often involves taking risks, and effective risk management can help to ensure that those risks are managed in a way that maximizes the chances of success.
Optimization of value is also important, but it is not the primary focus of risk management. Optimization of value involves maximizing the value that is created by an organization, which requires a strategic approach that takes into account the organization's goals, capabilities, and resources. While risk management can help to minimize the negative impact of risks on value creation, it is not focused solely on maximizing value. Instead, it is focused on preserving the value that has already been created by managing risks that could potentially impact the organization's ability to achieve its objectives.