What is one of the main goals of establishing policies in risk management?

One of the main goals of establishing policies in risk management is to protect systems and information. Effective risk management policies are designed to mitigate potential threats that could harm an organization’s assets, including its technology systems and the sensitive data they handle. By defining clear policies, organizations can set standards for how to identify, assess, and respond to risks, ensuring that people across the organization understand the importance of safeguarding both physical and digital resources.

These policies often include procedures for monitoring and reporting risks, conducting regular reviews, and implementing controls to improve security. Overall, the emphasis on protection helps maintain operational integrity, compliance with regulations, and prevents financial losses arising from data breaches or system failures.

In contrast, minimizing communication would likely hinder collaboration and the sharing of risk-related information rather than promoting a comprehensive understanding of risk across the organization. Encouraging risk-taking behavior contradicts the goal of risk management, which is to manage and mitigate risks rather than to embrace them. Reducing financial investments may not directly relate to risk management policies, as those policies are focused more on protecting assets rather than altering the level of investment.