Final answer:
The primary purpose of a risk-focused financial examination is to assess and manage potential risks in financial institutions in order to reduce the possibility of financial losses.
Step-by-step explanation:
The primary purpose of a risk-focused financial examination is to assess and manage the potential risks that financial institutions face. This examination helps identify and evaluate the risks associated with financial assets and investments, allowing institutions to make informed decisions and reduce the possibility of financial losses. By analyzing the risk involved in different types of financial assets, institutions can develop strategies to mitigate those risks and protect the interests of their customers.