Which of the following defines risk management?

The correct choice defines risk management as the identification, assessment, and prioritization of risks. This definition encapsulates the comprehensive nature of risk management, which involves recognizing potential threats to safety or operations, analyzing the likelihood and impact of these threats, and ranking them based on their severity. This structured approach enables organizations, including those in the Department of Defense, to systematically address risks, allocate resources effectively, and implement controls to mitigate identified risks.

Understanding risk management in this context is crucial because it lays the groundwork for further actions, such as creating a risk management plan or collecting data related to loss prevention. While evaluating potential hazards and creating a risk management plan are important components of the overall process, they are subsets of the broader framework that encompasses identification, assessment, and prioritization. Risk management must begin with a clear understanding of what risks exist, their potential impacts, and how they can be ranked and addressed effectively.