What is the primary function of a Hardware Security Module (HSM)?

The primary function of a Hardware Security Module (HSM) is to safely store and manage encryption keys. HSMs are specialized physical devices designed to provide a high level of security for cryptographic keys and operations. They are used extensively in various applications requiring secure key management, which includes encryption, decryption, and digital signatures.

By containing the cryptographic keys within a secure enclave, HSMs help protect sensitive information from unauthorized access and reduction the risk of key compromise. Additionally, HSMs often provide accelerated encryption and decryption processes due to their dedicated hardware, further enhancing security without compromising performance.

The other options do not align with the core purpose of an HSM. While optimizing cloud storage solutions or providing virtualized hardware resources are important components of cloud infrastructure, they do not relate to the secure management of encryption keys. Similarly, enforcing network policies pertains more to network security mechanisms rather than the specific functions of an HSM. Thus, option C accurately captures the integral role of HSMs in managing cryptographic materials securely.