ACCA Strategic Business Leader (SBL) Practice Exam

What is one primary role of risk managers?

1. Conducting internal audits

2. Providing leadership and direction

3. Developing marketing campaigns

4. Overseeing financial reporting

The correct answer is: Providing leadership and direction

The primary role of risk managers is to provide leadership and direction in identifying, assessing, and mitigating risks that an organization might face. This involves establishing a risk management framework, developing policies, and leading efforts to ensure that potential risks are effectively managed. By guiding teams and influencing decision-making processes, risk managers help create a proactive culture around risk, which is crucial for organizational stability and profitability. In the context of the other choices, while conducting internal audits, developing marketing campaigns, and overseeing financial reporting are significant functions in their own right, they do not specifically align with the core responsibilities of risk management. Internal audits are more focused on compliance and control, marketing campaigns relate to promoting products or services, and financial reporting entails presenting the financial status of the organization. Each of these areas may involve aspects of risk, but they do not encapsulate the overarching role of guiding the organization in risk management strategy and practices like providing leadership and direction does.