Control activities can be designed to:

Control activities are essential components of an organization's internal control framework and they can be tailored to achieve various objectives regarding risk management. The correct option highlights that control activities can be designed to both detect and prevent risks, which is a crucial aspect of effective internal controls.

Preventive controls are established to deter potential issues before they occur. These might include segregation of duties, proper authorization processes, and adequate physical security measures. By implementing these preventive measures, an organization can significantly reduce the likelihood of fraud or errors occurring.

On the other hand, detective controls are aimed at identifying risks after they have occurred. These may include reconciliations, audits, and monitoring activities. They serve as a means to discover any anomalies or deviations from the expected norms, enabling the organization to respond to incidents promptly.

By combining both preventive and detective control activities, an organization can create a more robust risk management strategy that not only mitigates the occurrence of risks but also identifies any that do manifest, thereby enhancing overall accountability and financial integrity. This multifaceted approach is why the correct answer encompasses both detection and prevention of risks.