Final answer:
Risk prioritization involves selecting and ranking risks based on their likelihood of occurrence or impact, helping businesses allocate resources and develop mitigation strategies.
Step-by-step explanation:
Risk prioritization refers to the process of selecting and ranking risks based on their likelihood of occurrence or potential impact. It involves evaluating the different risks faced by a company or organization and determining which risks should be given higher priority for mitigation or addressing.
For example, a business may identify several potential risks such as financial losses, natural disasters, or cybersecurity breaches. By prioritizing these risks, the company can focus its resources and efforts on addressing the risks that are more likely to occur or have a significant impact on the organization.
Ultimately, risk prioritization helps businesses make informed decisions about how to allocate resources and develop strategies to manage and mitigate risks.