What is Risk Management (RSKM) and what are its key steps?

• A. RSKM identifies risks, analyzes impact, plans mitigations, implements actions, and monitors risks.
• B. RSKM collects project metrics.
• C. RSKM monitors performance after project closure.
• D. RSKM focuses on vendor selection.

Answer: (C)

Risk management is a structured, ongoing process that handles uncertainties to protect and improve project objectives. It starts by identifying potential risks that could affect scope, schedule, cost, or quality. Next, those risks are analyzed to estimate how likely they are and how big their impact could be, which helps prioritize where to act. Then you plan risk responses—deciding how to avoid, mitigate, transfer, or accept each risk, and creating contingency plans and reserves. After that, you implement the chosen responses, assigning owners and timelines so mitigations actually happen. Finally, risk monitoring keeps watching for new risks and changing conditions, checks whether mitigation actions are working, and adjusts plans as needed. This cycle runs throughout the project, from start to finish, and even informs lessons learned afterward. The option that suggests risk management only involves monitoring after project closure misses the ongoing, life‑cycle nature of the activity.