What is the key responsibility of management in risk management?

The key responsibility of management in risk management is to establish policies and allocate resources. This encompasses the broader strategic oversight that management has in ensuring the organization's risk management framework is effective. By establishing policies, management defines the organization's risk appetite, outlines the procedures for identifying and mitigating risks, and sets the tone for how risk is perceived and dealt with throughout the organization.

Furthermore, allocating resources is critical as it involves ensuring that there are sufficient funds, personnel, and technologies in place to manage risks effectively. This allocation ensures that the organization can respond to potential risks and execute its risk management strategies. In this context, management acts as the driving force behind risk management efforts, promoting an organizational culture that prioritizes risk awareness and proactive management.

Other options, while important in their own right, do not capture the overarching role of management in risk management. Implementing technology solutions, conducting training sessions, and minimizing operational costs are all actions that can support risk management but are not as fundamental to the establishment of the risk management strategy as creating policy and resource allocation.