What does "risk management" encompass in business analysis?

In the context of business analysis, risk management refers to a comprehensive process that involves identifying potential risks that could affect a project or business objective, assessing the likelihood and impact of those risks, and prioritizing them based on their significance. After prioritization, it involves developing plans to respond to these risks, which may include strategies for mitigating them, transferring them, accepting them, or avoiding them altogether.

This approach is crucial, as it helps businesses foresee challenges and devise strategies to address them proactively, thereby minimizing their impact on project success. It ensures that risk considerations are integrated into the planning and decision-making processes, ultimately leading to more successful project outcomes.

The other options primarily focus on aspects of project management or operations without addressing the holistic nature of risk management. For instance, calculating project costs and setting project deadlines are important project management tasks but do not involve the proactive approach required for risk management. Also, managing stakeholder relationships, while essential, does not encompass the systematic identification and prioritization of risks inherent in the risk management process.