What do controls in a risk management context refer to?

In a risk management context, controls refer to processes, procedures, or devices designed to mitigate risks. This definition encompasses a variety of mechanisms that organizations can implement to reduce the likelihood or impact of adverse events. Controls can take many forms, such as physical barriers (like security systems), administrative policies (like access controls), or technical solutions (like firewalls). The primary purpose of these controls is to establish a proactive approach to managing risk by identifying potential threats and implementing measures to mitigate them effectively.

The other options do not align with the concept of risk management controls. For example, sales strategies and marketing plans relate to business growth and customer engagement rather than risk mitigation. Financial reserves can be a part of broader risk management strategies, but they do not directly constitute controls themselves; instead, they might be deployed as a financial safety net after risk has materialized. Employee performance reviews focus on assessing individual contributions and do not specifically address risk management processes. Therefore, B is the only choice that accurately reflects what controls mean in the context of managing risks.