What does effective risk communication aim to achieve?

Effective risk communication aims to inform and engage stakeholders about risks, making option B the correct choice. This involves sharing relevant information regarding potential threats and vulnerabilities, as well as the implications of these risks for the organization. By effectively communicating risks, stakeholders, including management, employees, and even external parties like customers or regulators, can understand the nature of the risks, the organization’s risk management strategies, and their role in mitigating those risks.

Additionally, effective risk communication fosters a culture of awareness and proactive management of risks. It encourages dialogue among stakeholders, leading to better decision-making and a collective approach to risk management. Engagement ensures that everyone understands their responsibilities in relation to identified risks and can contribute to developing robust mitigation strategies.

The other choices reflect misconceptions about the scope and goals of risk communication. Eliminating all risks is unrealistic, as some level of risk is inherent in any organization's activities. Focusing only on financial performance does not encompass the full range of risks, which can include operational, reputational, and compliance risks. Guaranteeing complete compliance ignores the dynamic nature of laws and regulations and the fact that compliance efforts can often be assessed only to a reasonable degree, rather than absolute certainty.