What factors should be considered when managing risk and opportunities?

• A. Cost, risk, and performance.
• B. Market share only
• C. Regulatory fines only
• D. Schedule acceleration

Answer: (A)

Managing risk and opportunities centers on understanding how actions affect value by considering cost, risk, and performance. You weigh the cost of risk controls or opportunities against the likelihood and impact of adverse events, and you assess how these actions will influence the ability to meet performance targets. This combination is the most complete because it addresses the economic side (cost), the chance and severity of problems (risk), and the operational outcomes (performance). Thinking only about market share misses the risk and performance implications, focusing only on regulatory fines ignores potential benefits and downside, and concentrating on schedule acceleration overlooks how timing changes can alter cost, risk, and performance. For example, a maintenance improvement may raise upfront costs but reduce downtime and boost reliability, creating overall value.