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How Does Project Risk Management Identify and Handle Uncertainties?

What Is the Main Goal of Project Risk Management?

Understand the primary purpose of project risk management: identifying and managing potential events that could impact project success. Learn how it addresses both threats and opportunities.

Question

What is the primary purpose of project risk management?

A. To eliminate all uncertainties in a project
B. To identify and manage potential events that may affect project objectives
C. To focus only on negative outcomes

Answer

B. To identify and manage potential events that may affect project objectives

Explanation

The primary purpose of project risk management is B. To identify and manage potential events that may affect project objectives. Risk management involves proactively identifying, analyzing, and responding to uncertainties—both threats (negative risks) and opportunities (positive risks)—that could impact the project’s scope, schedule, cost, or quality. It is impossible to eliminate all uncertainty (Option A) in complex projects, and focusing only on negatives (Option C) ignores potential benefits that could enhance project value.