Final answer:
The elimination of an unfavorable deviation from expectations is not a purpose of a risk management program because these programs aim to mitigate, not eliminate, risks. Identification, evaluation, and prediction of risks are the key functions of risk management.
Step-by-step explanation:
Purpose of a Risk Management Program
Risk management programs are a crucial part of organizational strategies to manage potential risks. The purpose of these programs is often misunderstood, leading to misconceptions about their goals. Let's clarify the primary purposes:
- Identification of an unfavorable deviation from expectations: To recognize potential risks before they occur.
- Evaluation of an unfavorable deviation from expectations: To determine the severity and impact of the risks.
- Prediction of an unfavorable deviation from expectations: To forecast potential risks based on various factors and scenarios.
Among the options provided, the only one that is not a purpose of a risk management program is (a) elimination of an unfavorable deviation from expectations. Risk management programs aim to mitigate risks rather than completely eliminate them, as it is often impractical or impossible to entirely remove all risk.