Which benefit is expected from having a risk management plan?

Having a risk management plan plays a crucial role in aligning an organization's operations with its strategic objectives. By identifying, assessing, and mitigating potential risks, an organization is better positioned to navigate uncertainties and challenges that could hinder its ability to achieve specified goals. This proactive approach creates a framework that not only enhances decision-making but also fosters confidence among stakeholders, as risks are managed in a systematic way.

While minimizing costs or creating bureaucratic processes may seem like potential outcomes, they are not the primary benefits associated with a well-designed risk management plan. Moreover, the notion that a risk management plan could guarantee zero risks throughout the organization is unrealistic, as risks are inherent in all operations. Proper risk management is about understanding and managing risks effectively, rather than eliminating them entirely. Therefore, the benefit of increasing the likelihood of achieving strategic objectives is central to the purpose of a risk management plan.