CAPM (Certified Associate in Project Management) Practice Exam

What does the 'plan risk management' process involve?

1. Identifying all risks associated with a project

2. Defining how to conduct risk management activities for a project

3. Implementing risk responses

4. Monitoring and controlling risks on a project

The correct answer is: Defining how to conduct risk management activities for a project

The 'plan risk management' process involves defining how to conduct risk management activities for a project. This process focuses on establishing the approach, methodologies, tools, and resources that will be used to manage risks throughout the project lifecycle. By planning risk management at the beginning of a project, the team can ensure a systematic and proactive approach to identifying, analyzing, and responding to potential risks. Option A is incorrect because identifying all risks is part of a different process. Option C is incorrect as implementing risk responses occurs after risks have been identified and analyzed. Option D is incorrect as monitoring and controlling risks is a separate process that comes after the risk management plan has been established in the 'plan risk management' process.