Which statement about risk management is incorrect?

Which statement about risk management is incorrect?

• A. It involves identifying hazards, assessing risk, implementing controls, and monitoring.
• B. It relies only on personal judgment without documenting hazards.
• C. It requires monitoring the effectiveness of controls.
• D. It is a continuous process.

Answer: (B)

Risk management is a systematic, ongoing process that starts with identifying hazards, then assessing the risk, selecting and implementing controls, and continually monitoring to ensure those controls work. Documentation is a core part of this approach because it captures what hazards were found, what risk levels were assigned, what controls were put in place, and how those controls perform over time. Relying only on personal judgment without documenting hazards contradicts this structured method; without records, decisions aren’t transparent, repeatable, or verifiable, and important hazards or control failures can be missed. The other statements fit the process: identifying hazards, assessing risk, implementing controls, and monitoring describes the full risk-management loop; monitoring the effectiveness of controls is necessary to know whether they truly reduce risk; and viewing risk management as a continuous process reflects the need to reassess and adjust as conditions change.

Risk management is a systematic, ongoing process that starts with identifying hazards, then assessing the risk, selecting and implementing controls, and continually monitoring to ensure those controls work. Documentation is a core part of this approach because it captures what hazards were found, what risk levels were assigned, what controls were put in place, and how those controls perform over time. Relying only on personal judgment without documenting hazards contradicts this structured method; without records, decisions aren’t transparent, repeatable, or verifiable, and important hazards or control failures can be missed.

The other statements fit the process: identifying hazards, assessing risk, implementing controls, and monitoring describes the full risk-management loop; monitoring the effectiveness of controls is necessary to know whether they truly reduce risk; and viewing risk management as a continuous process reflects the need to reassess and adjust as conditions change.