What is the correct term for the process of identifying risks and taking effective steps to minimize them?
A. Risk assessment
B. Risk strategy
C. Risk management
D. Liability assessment
Answer: C – Risk management is the correct term for the process of identifying risks and taking effective steps to
Explanation: A risk refers to an uncertain event that will either have a positive or negative effect upon the completion of a program or its subsidiary projects-if the event occurs. Effective risk management is crucial to planning and maintaining a program and its subsidiary projects. At the program level, risk management activities can include: identifying potential project/program risks and their causes, reviewing the risk response plans from every subsidiary project and analyzing how that potential risk could have an effect upon subsequent projects, and to propose responses to those risks. Obviously, in all of these cases, effective communication is the key to managing the risks.