Which of the following is the PRIMARY reason for implementing a risk management program? 

Answer options:

A. Allows the organization to eliminate risk
B. Is a necessary part of management`s due diligence
C. Satisfies audit and regulatory requirements
D. Assists in incrementing the return on investment (ROD

B

The key reason for performing risk management is that it is part of management`s due diligence. The elimination of all risk is not possible. Satisfying audit and regulatory requirements is of secondary importance. A risk management program may or may not increase the return on investment (ROD.