How does Application Portfolio Management (APM) enhance risk management?

Application Portfolio Management (APM) enhances risk management by focusing on the prioritization of mitigating actions for high-risk applications. In the context of APM, it is crucial to identify which applications pose significant risks to the organization, whether those risks are related to security vulnerabilities, compliance issues, or operational inefficiencies.

Once these high-risk applications are identified, APM helps organizations formulate and prioritize strategic actions to mitigate these risks effectively. This enables organizations to allocate resources more efficiently, ensuring that the most critical risks are addressed first, thus minimizing potential threats to business operations and data integrity. By approaching risk in this structured manner, APM not only protects the organization from potential harm but also optimizes its overall application landscape for better performance and security.

The other options do not contribute effectively to a comprehensive risk management strategy. Identifying applications with low risks does not address the critical need for action on high-risk applications. Eliminating applications with no risks overlooks the reality that most applications will have some level of risk associated with them, which could lead to complacency. Lastly, avoiding risk assessments entirely is counterproductive, as it eliminates the necessary evaluations that inform decision-making regarding application management. Thus, prioritizing mitigating actions for high-risk applications stands out as the most effective