Setting clear objectives is crucial for effective risk management. Clear objectives provide a basis for identifying, assessing, and responding to risks. They ensure that all risk management activities are aligned with the organization's goals and help to prioritize risks based on their potential impact on achieving these objectives. Without clear objectives, it is challenging to evaluate the relevance and significance of risks and to develop appropriate risk responses.
References:
* COSO Enterprise Risk Management Framework
* IIA Practice Guide: Assessing the Adequacy of Risk Management Using ISO 31000