Certified Governance Risk and Compliance (CGRC) Practice Exam 2026 – All-in-One Guide to Master Your Certification!

One of the primary goals of risk management is to find an economic balance between the impact of a risk and the cost of the countermeasure. This approach prioritizes a cost-effective strategy where resources are allocated in a way that optimally mitigates risks without incurring unnecessary expenses.

Effective risk management recognizes that while it is important to address risks proactively, it is neither feasible nor practical to eliminate all risks entirely. Rather, the focus is on assessing risks based on their potential impact and likelihood, and then implementing appropriate measures to mitigate them in a way that aligns with the organization's objectives and budget constraints.

In contrast, the objective of eliminating all potential risks is unrealistic, as risks are inherent in any business environment and can never be completely eradicated. Increasing the number of identified risks does not contribute to better management; instead, it could lead to confusion and overwhelm. Lastly, while creating a risk management team is part of implementing a risk management framework, it is not a primary goal of risk management itself. The essence of risk management is about making informed decisions that strike a balance between risk and reward, which aligns with the chosen answer.