What does risk ownership refer to?

Risk ownership is the assignment of responsibility for managing and mitigating identified risks to a specific individual or team. This concept is crucial in risk management because it ensures that there is accountability and that someone is designated to monitor the identified risks, develop mitigation strategies, and address any issues that arise. When risks are owned by a specific person or team, it promotes a proactive approach to risk management, enabling a structured response to potential threats and a clearer understanding of who is responsible for what aspects of risk management.

The other choices represent different facets of risk management but do not accurately capture the essence of risk ownership. Analyzing potential financial losses, implementing strategies to eliminate risks, and measuring risk exposure are all important components of risk management processes; however, none of these directly relates to who is responsible for managing specific risks. Risk ownership focuses on accountability, making it an essential part of an effective risk management framework.