Which financial term describes the process of evaluating procedures to minimize risks?

The correct answer, which pertains to evaluating procedures to minimize risks, is risk management. Risk management involves identifying, assessing, and prioritizing risks along with implementing strategies to minimize, control, or eliminate the impact of unfortunate events. This term encompasses a holistic approach to managing potential threats that could hinder an organization's ability to achieve its objectives.

Risk management includes not only the assessment of potential risks but also the development of plans and protocols to address them. This process often involves creating contingency plans, allocating resources effectively, and continuously monitoring risks to ensure that strategies remain effective over time.

In contrast, risk assessment is a component of risk management rather than a standalone process; it specifically focuses on the identification and evaluation of risks without necessarily encompassing the full range of measures taken to manage those risks. Market analysis refers to the study of market conditions and potential opportunities, while performance evaluation involves assessing the effectiveness or efficiency of processes or personnel, none of which capture the essence of managing risks in the manner described.