Which component of risk management aims to reduce exposure to risk factors and decrease residual risk?

Risk mitigation is the component of risk management that focuses on reducing exposure to risk factors and decreasing residual risk. This process involves implementing strategies to limit or eliminate potential threats before they can impact an organization. By assessing the risks associated with various activities or assets, organizations can apply specific measures, such as enhancing security protocols, employing technology solutions, or developing contingency plans, to lower the likelihood of negative outcomes and their potential consequences.

This proactive approach not only helps to safeguard assets but also often leads to a more resilient organizational structure where risk is managed effectively. It allows organizations to achieve a balance between operational goals and safety measures. In this context, risk mitigation is essential because it actively works to minimize risk rather than simply moving, accepting, or limiting it.