ITIL 4 Foundation Practice Exam

What is the primary goal of risk management practice within an organization?

1. To maximize profits from services

2. To understand and effectively handle risks

3. To reduce operational costs

4. To improve customer satisfaction

The correct answer is: To understand and effectively handle risks

The primary goal of risk management practice within an organization is to understand and effectively handle risks. This involves identifying potential risks that could affect the organization's operations, projects, and services, and implementing strategies to mitigate or manage these risks. By doing so, organizations can create a framework that allows them to make informed decisions, ensuring that risks are acknowledged and addressed proactively rather than reactively. Understanding and handling risks involves not only recognizing the potential negative impacts but also evaluating the opportunities that certain risks might present. This comprehensive approach enables organizations to balance risk and reward, leading to more strategic and resilient operations. While maximizing profits, reducing operational costs, and improving customer satisfaction are important objectives for any business, they are often influenced by how well risks are managed. Effective risk management lays the groundwork that supports these broader goals, as it helps ensure that the organization is prepared for uncertainties and can respond accordingly.