Certified Governance Risk and Compliance (CGRC) Practice Exam 2025 – All-in-One Guide to Master Your Certification!

The primary goal of Information Risk Management (IRM) is to identify and assess risks, then reduce them to an acceptable level. Risk is an inherent part of any organization, especially in the realm of information and technology. The objective of IRM is not to eliminate risk entirely—this is often impractical and can be impossible due to the dynamic nature of threats and vulnerabilities. Instead, IRM focuses on understanding the potential risks that could impact the organization and determining the level of risk that is acceptable given the organization's objectives and resources.

By identifying risks, an organization can evaluate their potential impacts and likelihoods, enabling informed decisions on how to address those risks. This may involve implementing controls, adopting certain risk mitigation measures, or accepting the risk at a certain level due to cost-benefit considerations. Therefore, the essence of IRM is about finding a balance between risk exposure and the resources available to manage those risks effectively.

In contrast, completely transferring risk is not typically feasible, as some level of risk always remains with the original organization, and simply documenting risks without considering their significance wouldn’t provide any strategic value for risk management.