What does risk management not include?

Risk management is fundamentally concerned with the identification, assessment, and prioritization of risks, followed by the application of resources to minimize or control the probability and impact of unfortunate events. Identifying potential risks is a core component, as it involves recognizing possible future uncertainties that could adversely affect the organization. Furthermore, controlling risks is essential in risk management, as it entails developing strategies to mitigate or eliminate identified risks. Implementing strategies to address risks is also a critical part of the risk management process, which involves putting into action the plans devised to manage those risks effectively.

Assessing customer preferences, while important for understanding market dynamics and tailoring products or services, does not fall under the scope of traditional risk management. This process is more aligned with market research and customer relationship management rather than the identification and mitigation of risks. Thus, it is accurate to say that assessing customer preferences is not included in the core activities encompassed by effective risk management practices.