Which of the following best describes the process of risk management?

The process of risk management is best described as a continuous decision-making process to address risks. This reflects the dynamic nature of risk, which can evolve over time due to changes in the environment, operations, or external factors. Effective risk management involves ongoing identification, assessment, and prioritization of risks, allowing organizations to adapt their strategies accordingly.

This approach acknowledges that risks are not static; they require regular review and adjustment of risk management strategies to be effective. Investing in a continuous process facilitates timely responses to new risks and enhances the organization's ability to mitigate potential negative impacts while capitalizing on opportunities.

In contrast, the other descriptions characterize approaches that do not align with current best practices in risk management. Describing risk management as a static method or a fixed approach overlooks the need for adaptability and responsiveness in a constantly changing risk landscape. Additionally, limiting risk management to solely financial aspects ignores the broader context including operational, reputational, and strategic risks that organizations must consider.