Differentiate risk assessment from risk management.

• A. Risk management identifies and quantifies risk; risk assessment develops strategies to mitigate risk.
• B. Risk assessment is about budgeting; risk management is about evaluating outcomes.
• C. Risk assessment occurs after project completion; risk management happens before planning.
• D. Risk assessment identifies and quantifies risk; risk management develops strategies to mitigate or avoid risk.

Answer: (D)

Differentiating what risk assessment does from risk management.

Risk assessment is about finding out what could go wrong and how serious it could be. It involves identifying hazards, estimating how likely they are to occur, and judging their potential impact or consequence. The result is a clear picture of the level of risk, often described as a risk score or rating that helps prioritize priorities.

Risk management takes that information and turns it into actions. It develops and implements strategies to reduce, avoid, or transfer those risks, and it plans for how to respond if the risk materializes. This includes choosing controls, allocating resources, setting timelines, and establishing monitoring to adjust as needed.

For example, in a community health program, a risk assessment might reveal potential barriers like low participation, supply shortages, or funding gaps, with estimates of their likelihood and impact. Risk management would then design concrete steps to address them—engaging community partners to boost participation, securing multiple suppliers, and creating a diversified funding plan with contingency timelines. This ongoing monitoring ensures the plan adapts as conditions change.