Which concept describes strategies implemented to manage risks in an organization?

The concept of risk mitigation specifically refers to the strategies and actions taken to reduce or eliminate risks that could negatively impact an organization. This involves identifying potential risks and proactively implementing measures to minimize their likelihood or impact. Effective risk mitigation can include various tactics such as developing contingency plans, purchasing insurance, or investing in security systems, all aimed at managing risks associated with operations, finance, and compliance.

While other options like financial planning and compliance management are related to broader aspects of organizational management, they do not focus exclusively on the methods employed to address and control risk. Financial planning primarily involves budgeting and managing resources for future financial performance. Risk assessment pertains to the identification and analysis of risks but does not encompass the implementation of specific strategies to address those risks. Compliance management deals with adhering to laws and regulations rather than directly managing risks itself. Thus, risk mitigation uniquely aligns with the theme of managing risks through strategic approaches.