Physical Security Professional Certification Practice Exam 2025 – Comprehensive Prep Guide

Risk management is best defined as a method to identify risks and their impacts. This approach involves systematically recognizing potential risks that could negatively affect an organization's assets or objectives and assessing the potential consequences of those risks. The goal of risk management is to develop strategies that can minimize the effects of those risks or mitigate them effectively.

By focusing on identifying risks and their potential impacts, organizations can prioritize which risks need immediate attention and what strategies might be necessary to manage them. This process also aids in making informed decisions that can enhance safety, security, and operational efficiency.

The other options reflect misconceptions or limited aspects of risk management. A strategy to eliminate all risks implies a total absence of risk, which is impractical since some level of risk is inherent in all activities. A guarantee against future losses suggests certainty in risk management outcomes, which is unrealistic as it is impossible to guarantee complete protection. A plan for disaster recovery is an important part of risk management, but it is specifically focused on responding to incidents rather than the broader process of identifying and managing risks overall.