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CAPM Practice: Demonstrate an understanding of the various project life cycles and processes

Question 79 of 95 in Demonstrate an understanding of the various project life cycles and processes

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What is the difference between a risk and an assumption?

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Correct answer: A risk is an uncertain event that could affect the project, while an assumption is something considered true without proof.

Explanation

A risk is an uncertain event or condition that, if it occurs, has a positive or negative effect on project objectives. An assumption is a factor considered to be true, real, or certain without proof or demonstration, often used in planning when information is incomplete.

**Why not A:** Risks do not always require immediate action; they require planned responses that may or may not be triggered. Assumptions are documented in assumption logs, not lessons learned. This option mischaracterizes both concepts.

**Why not C:** Risks are not certain to occur; by definition, they are uncertain events. Assumptions are considered true for planning purposes and may or may not prove accurate, but the key difference is that risks involve uncertainty while assumptions are accepted as true.

**Why not D:** Risks can have both positive (opportunities) and negative (threats) impacts on the project. Assumptions are not inherently positive; they are neutral planning factors that may prove true or false. Neither concept is limited to only one type of impact.

Key Concept

This question covers Demonstrate an understanding of the various project life cycles and processes under Demonstrate an understanding of the various project life cycles and processes (Project Management Fundamentals and Core Concepts).

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