International Project Management Association (IPMA) Practice Exam

What distinguishes a risk from a problem in project management?

1. Risks cause project failures

2. Risks are always in the future

3. Risks cost more to respond to

4. Risks cannot be ignored

The correct answer is: Risks are always in the future

In project management, the characteristic that truly sets risks apart from problems is that risks are always related to future uncertainties. This means that risks represent potential events or conditions that could negatively impact the project if they occur, but they have not yet happened. This future orientation allows project managers to devise strategies to mitigate or manage these potential risks before they manifest into actual problems. On the other hand, problems are issues that have already occurred and require immediate action to resolve. By understanding that risks are inherently future-focused, project managers can implement proactive measures rather than just reactive responses to problems. The other options do not accurately capture the fundamental distinction. While risks can indeed lead to project failures if they materialize, this statement does not differentiate them clearly from problems. Similarly, it's not necessarily true that risks cost more to respond to; the cost varies depending on the context and specific circumstances. Lastly, although it’s important to address risks, the notion that they cannot be ignored does not adequately express their future-oriented nature. Understanding that risks pertain to potential future incidents is crucial for effective risk management in projects.