Certified Supply Chain Professional (CSCP) Practice Exam

What is the primary goal of project risk management?

1. ID and prioritize risks, control risk

2. Develop a schedule for completing the project

3. Ensure all stakeholders are satisfied

4. Monitor project performance against the budget

The correct answer is: ID and prioritize risks, control risk

The primary goal of project risk management is to identify and prioritize risks and control those risks effectively. This process involves systematically analyzing potential events that could negatively impact the project's objectives. By identifying risks early, project managers can prioritize them based on their potential impact and likelihood of occurrence, allowing for a focus on the most significant threats to the project. Controlling risks means implementing strategies to mitigate or respond to those risks. This proactive approach ensures that the project remains on track and can adapt to challenges, thereby increasing the likelihood of successful outcomes. While developing a schedule, ensuring stakeholder satisfaction, and monitoring project performance against the budget are important aspects of project management, they do not encapsulate the primary goal of risk management, which is primarily concerned with proactively managing uncertainties that could affect the project's success.