What key component of risk management involves identifying potential risks that could affect organizational objectives?

The key component of risk management that involves identifying potential risks impacting organizational objectives is risk identification. This process is fundamental to risk management as it lays the groundwork for all subsequent steps. During risk identification, teams systematically detect and document potential risks, considering both internal and external factors that could adversely affect the organization's goals.

Identifying risks helps organizations understand the landscape in which they operate. It involves gathering information from various sources, including stakeholders, past occurrences, and industry standards, to ensure a comprehensive view of risks. Proper risk identification allows organizations to prioritize and assess risks effectively, setting the stage for further risk assessment, treatment, and monitoring.

In essence, without a thorough risk identification process, an organization may overlook significant risks that could lead to unfavorable outcomes, jeopardizing the achievement of its objectives.