What can organizations do to proactively address potential risks?

Engaging in systematic risk management practices allows organizations to proactively identify, assess, and mitigate potential risks before they escalate into serious issues. This approach involves a structured process of recognizing risks, analyzing their likelihood and impact, and implementing controls or strategies to manage them effectively. By systematically evaluating and addressing risks, organizations can enhance their resilience, improve safety, and protect their assets.

This proactive stance contrasts starkly with the other options. Random safety checks, while beneficial, lack the comprehensive analysis provided by systematic practices. Relying solely on past experiences does not incorporate new risks that may have emerged or changes in the environment. Waiting for regulatory changes puts the organization at risk, as it reacts rather than anticipates potential issues. Thus, systematic risk management practices are essential for effectively navigating risks.