HSS Block B Practice Test

Identifying hazards is the starting point in risk management planning. A solid risk plan proceeds by surfacing all potential risks or hazards that could affect objectives, then evaluating how likely each is and how severe the impact would be. That assessment guides prioritization and the development of appropriate responses, such as controls, mitigation steps, or contingency plans, and it also sets up who is responsible and how progress will be monitored. Without first identifying hazards, you can’t meaningfully assess, prioritize, or manage risks, so this step is foundational to an effective plan. The other activities mentioned aren’t about managing risk. A marketing strategy focuses on reaching customers and growing revenue, not on identifying or mitigating risks. Capital budgeting deals with evaluating investments and financing, which is financial planning rather than risk management. A staff lunch schedule is an operational detail and not part of the risk assessment and response process.