Certification in Risk Management Assurance (CRMA) Practice Exam 2025 - Free CRMA Practice Questions and Study Guide

In risk management, the term 'control' refers to a measure that mitigates risk by reducing its impact or likelihood. This is a fundamental concept in risk management, as controls are designed to minimize the potential negative effects of risks on an organization. Controls can include a variety of strategies such as implementing policies, procedures, training, and technology aimed at either preventing risks from occurring or lessening their impact if they do occur.

Control measures are essential because they provide organizations with a structured way to address uncertainties. By identifying the possible risks and then establishing controls, organizations can create a safer and more reliable operational environment.

The other choices characterize risk management incorrectly. Measures that increase risk likelihood do not align with the purpose of control, which is to mitigate risks. Consolidating all risks could imply a lack of specificity in addressing individual risks, contrary to the need to manage them effectively. Lastly, while avoiding risk entirely is a strategy, it isn't always practical or feasible; it contradicts the idea that controls exist to help navigate and manage inherent risks rather than eliminate them completely.