What is the primary goal of risk mitigation?

The primary goal of risk mitigation is to implement strategies to reduce or eliminate identified risks. This involves assessing potential risks within a given context, analyzing their impact, and developing strategies that either reduce the likelihood of the risk occurring or minimize its impact if it does occur. Effective risk mitigation acknowledges that it is often impossible to completely eliminate all risks, and instead focuses on managing and controlling them to acceptable levels. This process can involve a variety of techniques, including risk transfer, risk acceptance, risk avoidance, and risk reduction, tailored to specific situations and needs.

Focusing solely on eliminating all risks completely is not practical or feasible, as every activity involves some level of risk. Increasing transaction speed and volume does not directly relate to risk management; rather, it pertains to operational efficiency and business growth. While ensuring compliance with regulations is important and often overlaps with risk management, it is not the central aim of risk mitigation efforts. Instead, compliance is typically one aspect of a broader strategy to mitigate risks.