Six Sigma Global Institute (SSGI) Project Management Professional Certification Practice Exam

Which is not a step in the risk management process?

1. Source identification

2. Risk monitoring

3. Project costing

4. Risk response

The correct answer is: Project costing

The correct choice is project costing because, while it is an important aspect of project management, it does not directly align with the core steps of the risk management process. The risk management process typically includes steps such as identifying potential risks, assessing their impact, developing responses to those risks, and continuously monitoring them throughout the project. Source identification involves recognizing and documenting risks that could affect the project. Risk monitoring is the ongoing process of observing identified risks and identifying new risks, evaluating the effectiveness of risk responses, and ensuring risks are managed properly throughout the project lifecycle. Risk response entails formulating strategies to address the identified risks, which can include risk avoidance, mitigation, transfer, or acceptance. In contrast, project costing focuses on estimating and controlling the costs associated with executing a project, which falls under project management but does not belong to the risk management process. Thus, identifying project costing as the option not related to risk management reinforces the understanding of the distinct roles various aspects of project management play.