Risk management vs. Portfolio management

CFA Level I
#1

Can someone please help me understand the difference in these two questions?

Question 1: Reasonable investors use portfolio approach to:

a) measure risk

b) reduce risk

c) get rid of risk

OA is B, which is what I chose.

VS.

Question 2 : Which of the following is not a goal of risk management?

a) Measuring exposure to risk

b) Minimize exposure to risk

c) Define the level of risk that the investor can or is willing to take.

OA is B but I chose C.

I can’t understand the difference between the two. Specifically, we do portfolio management to reduce risk, but then minimizing exposure to risk is not a goal of risk management? This is quite confusing to me.

I’d appreciate any help.

#2

These are essentially two separate definitional question. The first is asking about basic portfolio theory (diversification can decrease risk without decreasing expected return). The second is just the definition of “Risk management” which should be in the glossary…so step one is recognizing that they are just asking you definitions.