When it comes to risk management, understanding the process is crucial. The options presented are:
- a) Taking steps to reduce risk to an acceptable level
- b) Identifying risks
- c) Assessing risks
- d) Eliminating all risks
The correct answer is d) eliminating all risks.
Explanation: Risk management involves a series of steps aimed at addressing potential uncertainties and mitigating their impacts. These steps typically include identifying the risks, assessing their potential effects, and taking measures to reduce them to an acceptable level. However, ‘eliminating all risks’ is not a practical step in risk management because it is virtually impossible to remove all risks from any process or project. Instead, risk management focuses on understanding and managing risks rather than attempting to eliminate them entirely.