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

A risk is an uncertain event or condition that, if it occurs, has an effect on project objectives. It is future-oriented (may or may not happen). An issue is a current problem or concern that exists now and requires resolution. This is the fundamental distinction between the two concepts.

**Why not A:** Neither risks nor issues are specifically tied to schedule or budget domains. Both can affect any project objective including scope, quality, resources, or stakeholder satisfaction. The distinction is about timing (future vs. current), not knowledge area.

**Why not C:** This reverses the urgency relationship. Issues require immediate attention because they are current problems. Risks require proactive planning but may not need immediate action since they are future uncertainties that may or may not materialize.

**Why not D:** Risks can be positive (opportunities) or negative (threats). Issues are generally problems that need resolution, though the scenario focuses on the timing distinction. The characterization that risks are always negative is incorrect.