International Project Management Association (IPMA) Practice Exam

What distinguishes a risk from a problem in project management?

1. Risks are more likely to cause project failures

2. Risks cost more to respond to

3. Risks are always in the future

4. Risks cannot be ignored

The correct answer is: Risks are always in the future

In project management, the distinction between a risk and a problem lies primarily in their temporal aspects—specifically, when they occur in relation to the project timeline. A risk is generally defined as a potential future event that could negatively impact the project. It represents uncertainty and involves the possibility of adverse outcomes if the risk materializes. Choosing the option that states that risks are always in the future accurately highlights this critical distinction. Risks have not yet happened but could occur, which is why they are systematically assessed and planned for during the risk management process. By identifying and analyzing risks beforehand, project managers can implement strategies to mitigate their impact if they do arise. In contrast, a problem is typically something that has already occurred and requires immediate resolution. Problems demand immediate attention and resources to rectify, hindering progress and possibly impacting project outcomes. While other aspects like costs associated with responses or the severity of risks can play a role in their management, the key differentiator is that risks are potential future occurrences, while problems are current situations that need addressing.