What is the objective of risk management in project management?

The objective of risk management in project management is to identify, analyze, and respond to project risks. This process involves systematically identifying potential risks that could affect the project's objectives, assessing their likelihood and impact, and developing strategies to mitigate, transfer, accept, or avoid those risks. Effective risk management enables project managers to prepare for uncertainties, minimizing disruptions and increasing the likelihood of project success.

This approach recognizes that while risks cannot be completely eliminated—due to the inherent uncertainties in any project—their impact can be managed through careful planning and proactive measures. By focusing on identification, analysis, and response, project managers are better equipped to navigate challenges and capitalize on opportunities that arise during the project lifecycle.

The other options do not align with the fundamental principles of effective risk management. Increasing project costs significantly contradicts the goal of managing risks effectively, as does suggesting a reduction in team involvement; both can undermine the project's outcomes. Similarly, the aim of completely eliminating risks is unrealistic and could lead to paralysis in decision-making, as it may deter teams from moving forward with essential activities due to the desire to remove all uncertainties.