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Public Service Entrance Exam (PSEE) · Question

Which of the following scenarios best demonstrates effective risk management?

Effective risk management involves proactive identification, assessment, and mitigation planning to minimize negative impacts.

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Question: Which of the following scenarios best demonstrates effective risk management?

Answer options:

  • Ignoring potential risks until they become actual problems. ✅ Identifying potential risks and developing contingency plans in advance.
  • Addressing risks only after they have caused significant damage.
  • Assuming all projects are inherently risk-free.

Correct answer: Identifying potential risks and developing contingency plans in advance.

Explanation: Effective risk management involves proactive identification, assessment, and mitigation planning to minimize negative impacts.

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