What does the term 'risk management' refer to?

The term 'risk management' refers to the recognition and management of potential trouble spots, which is fundamental to ensuring that a project can achieve its objectives despite uncertainties. Effective risk management involves identifying potential risks that could impact the project's success, analyzing the likelihood and impact of these risks, and implementing strategies to mitigate them. This process allows project managers to proactively address issues before they become significant problems, ensuring smoother project execution.

In this context, handling project deadlines, analyzing costs, or communicating with stakeholders are all important aspects of project management, but they do not specifically pertain to the principles and practices of risk management. Risk management focuses primarily on understanding and addressing uncertainties that could jeopardize the project's outcomes.