The PRIMARY objective of a risk management program is to:

A.
minimize inherent risk.

B.
eliminate business risk.

C.
implement effective controls.

D.
minimize residual risk.

Explanation:

The goal of a risk management program is to ensure that residual risk remains within manageable
levels. Management of risk does not always require the removal of inherent risk nor is this always
possible. A possible benefit of good risk management is to reduce insurance premiums, but this is

not its primary intention. Effective controls are naturally a clear objective of a risk management
program, but with the choices given, choice C is an incomplete answer.