What role does 'training and awareness' play in risk management?

Training and awareness serve a vital role in risk management by equipping employees with the knowledge they need to recognize and understand potential risks within their organization and how to mitigate them. Through effective training programs, employees gain insight into the various types of risks they might encounter, from operational to financial, and learn proactive strategies to handle these risks in their daily work.

Furthermore, an informed workforce is better prepared to contribute to a risk-aware culture, which is essential for identifying vulnerabilities and preventing incidents before they occur. By understanding their specific roles in risk management, employees can take appropriate actions to either avoid risks or manage them effectively. This active participation not only empowers employees but also enhances the overall risk management framework of the organization, ultimately leading to reduced risks and an improved environment for business operations.

In contrast, the other options do not accurately reflect the purpose of training and awareness in risk management. Increasing employee workload does not correlate with the goal of fostering understanding and responsibility regarding risks. Ensuring employees are unaware of risks would negate the whole purpose of risk management training, which is to create awareness. Lastly, a focus solely on compliance training suggests a limited viewpoint as it excludes the broader objectives of instilling risk awareness and fostering a proactive approach to managing risks in the organization