Continuous Quality Improvement (CQI) Practice Exam

What is the primary goal of risk management in an organization?

1. To increase revenue through marketing efforts

2. To foster employee satisfaction and engagement

3. To change culture, processes, and structures

4. To maintain customer service at all costs

The correct answer is: To change culture, processes, and structures

The primary goal of risk management in an organization is indeed to change culture, processes, and structures to better identify, assess, and mitigate risks. Effective risk management involves the proactive identification of potential risks that could hinder the achievement of objectives and the implementation of processes and structures to address those risks. By fostering a risk-aware culture, organizations can ensure that all employees understand the significance of managing risks in their daily operations, which ultimately leads to improved decision-making and resilience. While increasing revenue through marketing efforts, employee satisfaction, maintaining customer service, and other elements are important for the success of an organization, they are not the primary focus of risk management itself. The essence of risk management is rooted in its ability to adapt the existing frameworks and enhance processes to safeguard the organization against uncertainties and to promote sustainable growth and stability. Thus, changing culture, processes, and structures is fundamental to embedding risk management practices throughout the organization.