Which statement is correct regarding risk management?

Risk management is fundamentally about preparing for uncertainty in projects. The correct assertion highlights that risk management is a reactive approach aimed at reducing surprises. This means that while risks cannot always be predicted or prevented entirely, risk management strategies are designed to identify potential issues and responses in advance, thereby preparing the team to handle them effectively when they arise. This proactive stance helps minimize the impact of risks, thus ensuring smoother project execution.

The core idea is that proper risk management enables project managers to mitigate adverse effects and capitalize on potential positive risks (opportunities), leading to better overall project outcomes. By addressing uncertainties beforehand, teams can anticipate and respond to challenges when they emerge rather than being caught off guard.

While some options suggest other perspectives—like the idea of eliminating risks, focusing solely on positive outcomes, or only considering risk during one phase of the project—it’s important to recognize that risk management is not about complete elimination, but rather about understanding and preparing for both negative and positive risks throughout all phases of the project.