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

The fundamental distinction is timing and certainty. Risks are uncertain future events that may or may not occur and require proactive planning. Issues are current problems or situations that exist now and require immediate response and resolution.

**Why not A:** Issues are documented in an issue log, not left undocumented. Both risks and issues require formal documentation and tracking. The distinction is about timing and certainty (future vs. current), not about whether they are documented.

**Why not B:** Both risks and issues can impact project costs. Risks may require contingency reserves, and issues may require immediate expenditures to resolve. The distinction is not about cost impact but about whether the event is uncertain and future or certain and present.

**Why not C:** Risks can have both negative impacts (threats) and positive impacts (opportunities). Issues are current problems that typically require resolution. This choice incorrectly limits risks to negative impacts and mischaracterizes issues as potentially positive.