What aspect does risk management often involve assessing?

Risk management primarily involves assessing financial threats because it focuses on identifying, analyzing, and mitigating potential risks that could negatively impact an organization’s financial health. This includes evaluating various types of financial risks such as credit risk, market risk, operational risk, and liquidity risk. By understanding these financial threats, businesses can implement strategies to minimize their impact, ensuring greater stability and sustainability.

On the other hand, while tax codes can affect financial planning and business operations, they are not typically the focal point of risk management. Market size pertains more to business growth and strategy rather than risk assessment. Employee satisfaction is crucial for organizational health but is more related to human resources and organizational behavior than to the financial risk management framework.