What does a risk register help to track?

A risk register is a crucial tool used in risk management that helps organizations systematically identify, assess, and manage risks. Its primary purpose is to catalog identified risks, along with details such as their potential impact, likelihood of occurrence, and management strategies.

This makes the risk register an essential part of an internal accounting system, as it enables organizations to monitor risks consistently and implement appropriate responses to mitigate them. By doing so, businesses can better prepare for uncertainties that could affect their operations and financial stability, ensuring that they remain compliant with regulations and maintain the integrity of their accounting systems.

While the other choices may be relevant to various aspects of business management, a risk register specifically focuses on the identification and management of risks rather than broader organizational goals, market conditions, or employee performance evaluations.