Answer: Accepting a level of risk that is within tolerable limits.

**Explanation:** - **Option A** is incorrect because risk management does not aim to minimize risk entirely. Instead, it involves understanding and accepting risks that align with organizational goals while maintaining an acceptable probability of failure. - **Option B** is correct. Risk management involves defining the acceptable level of risk, measuring current risk exposure, and adjusting it to align with the defined tolerance. The goal is to maximize value while operating within a tolerable risk framework. - **Option C** is incorrect because risk management is not about predicting risks. While risk managers aim to avoid surprises, their role is not to forecast future events but to manage and mitigate risks effectively. This aligns with the principles of portfolio management, where defining and managing risk is a key component of achieving objectives.

Author: LeetQuiz Editorial Team