FBLA Sports Management & Entertainment Practice Exam 2026 – The Complete All-in-One Guide to Exam Success!

The correct answer focuses on the loss from unforeseen incidents, which is a primary concern of risk management within any organization, including those in sports management and entertainment. Risk management involves identifying potential risks that could lead to financial loss, such as accidents, natural disasters, or other unexpected events. By proactively addressing these risks, organizations can implement strategies to mitigate potential financial impacts, thus providing a level of financial security and stability.

In the context of the other choices, while future revenue generation and investment opportunities can be relevant areas for financial planning and strategic decisions, they do not directly pertain to the core function of risk management. Additionally, marketing budget allocation deals more with resource distribution rather than the anticipation and management of risks related to financial loss. This highlights the importance of loss prevention and the role of risk management in safeguarding an organization’s financial health against uncertainties.