PMI Risk Management Professional Practice Exam

What is the primary goal of risk management?

1. Identify a list of risks that might impact the project

2. Avoid all potential and actual risks on the project

3. Ensure that the project fulfills its intended needs

4. Increase the possibility and impact of positive events while decreasing negative events

The correct answer is: Increase the possibility and impact of positive events while decreasing negative events

The primary goal of risk management is to increase the possibility and impact of positive events while decreasing negative events. This is grounded in the comprehensive understanding of risk as encompassing both threats and opportunities. Hence, effective risk management involves not only identifying and mitigating potential risks that can derail a project but also recognizing and enhancing opportunities that can lead to project success. By proactively managing risks, a project can navigate uncertainties more effectively, optimizing resources and strategies to convert potential challenges into advantages. This holistic approach ensures that a project remains aligned with its objectives by maximizing beneficial outcomes and safeguarding against setbacks. Thus, the essence of risk management is about balancing the dual aspects of risk, leading to a more successful project outcome.