Which of the following is NOT a component of risk management?

The correct answer is the elimination of risks, as it is not an actual component of risk management. Risk management involves a comprehensive process that focuses on identifying, evaluating, and controlling risks that organizations face.

Identification of risks is the first step, where potential hazards or issues that could negatively impact the organization are recognized. This includes understanding the nature of the risks and how they could affect operations.

The evaluation of risks follows, where the identified risks are assessed in terms of their potential impact and likelihood of occurrence. This evaluation helps to prioritize risks and decide which ones require more focused management and resources.

Control of risks refers to the strategies and measures implemented to mitigate the identified risks. These can include developing policies, procedures, and practices to minimize the financial impact of risk events.

In contrast, while eliminating risks may be a desirable goal, it is often unrealistic. Risk cannot be completely eradicated in most cases; instead, organizations aim to manage and control risks to reduce their impact and likelihood effectively. Thus, the act of eliminating risks does not fit into the systematic approach of risk management.