Which of the following is a proactive approach to managing risks?

Identifying and prioritizing risks is a proactive approach because it involves actively seeking out potential issues before they arise and assessing their likelihood and impact. This enables organizations to develop strategies to mitigate these risks effectively. By recognizing risks early in the process, an organization can implement preventive measures, allocate resources accordingly, and make informed decisions that can prevent incidents from occurring in the first place.

In contrast, waiting for incidents to occur or assessing risks only after an incident happens are reactive strategies, as they do not involve any preemptive action. Reducing staff to cut costs is a financial management decision that may not directly address the underlying risks and could potentially create additional issues if not aligned with a comprehensive risk management strategy.