What are the different types of controls used in risk management?

The types of controls used in risk management are categorized into preventive, corrective, directive, and detective.

Preventive controls are implemented to avoid the occurrence of risks by addressing potential threats before they materialize. For instance, creating security protocols can prevent data breaches from occurring.

Corrective controls are established to rectify problems after they have occurred, ensuring that risk impacts are mitigated or eliminated. In practice, this might involve steps taken to restore systems after a cyber attack.

Directive controls provide guidance on how processes should unfold in various situations, effectively steering behavior within a framework that aligns with risk management objectives.

Detective controls are those that identify and reveal risks or incidents after they have taken place, allowing organizations to respond appropriately. Examples include monitoring systems that alert management to unauthorized access or discrepancies.

By using a combination of these controls, organizations can create a comprehensive risk management strategy that effectively minimizes potential adverse outcomes. The other answer choices presented different classifications that do not encompass the well-established categories recognized in risk management practices.