According to the PMBOK® Guide, specifically within the Project Risk Management knowledge area, the fundamental objective of project risk management is to increase the probability and/or impact of positive risks (opportunities) and to decrease the probability and/or impact of negative risks (threats).
Opportunities vs. Threats: In PMI methodology, " risk " is an uncertain event or condition that, if it occurs, has a positive or negative effect on one or more project objectives. Therefore, risk management is not just about avoiding bad things; it is equally about capturing good things.
Managing Opportunities: Strategies for positive risks include Escalate, Exploit, Share, Enhance, and Accept. By " Enhancing " a risk, the project manager actively works to increase the chance of the opportunity occurring or the magnitude of the benefit it provides.
Optimizing Project Success: By focusing on both sides of the risk spectrum, the project manager maximizes the likelihood of project success. For example, finishing a project early (a positive risk) is just as much a subject of risk management as a potential delay (a negative risk).
Continuous Process: Risk management is iterative. Throughout the project life cycle, new opportunities may emerge that require the team to shift resources or change tactics to " Increase the impact " of those positive events.
Comparison with other options:
A. Decrease the probability and impact of an event...: This statement is incomplete. While we want to decrease the impact of negative events (threats), we want to increase the impact of positive events.
B. Distinguish between a project risk and a project issue...: While distinguishing between the two is an important administrative task (risks are uncertain future events, issues are current certainties), it is a step in the process, not a primary objective of the entire Risk Management knowledge area.
D. Removal of project risk: It is virtually impossible to " remove " all project risk. Even if specific risks are avoided, the act of doing a project inherently involves uncertainty. The goal is to manage and optimize risk, not necessarily eliminate it entirely.
