Final answer:
The essential elements of managing project risks include monitoring and controlling, which covers risk identification, analysis, prioritization, response planning, monitoring, and control. These processes are crucial for ensuring the project's success by proactively addressing potential risks.
Step-by-step explanation:
The essential elements of managing project risks involve a series of steps that aim to identify, analyze, and respond to potential risks throughout the life of a project. The correct answer to the question is b) Monitoring and controlling, which encompasses various crucial activities in risk management. These include:
- Risk identification: Recognizing potential risks that could affect the project's outcome.
- Risk analysis: Evaluating the likelihood and impact of identified risks.
- Risk prioritization: Determining which risks need immediate attention based on their potential impact.
- Risk response planning: Developing strategies to mitigate, accept, transfer, or avoid risks.
- Risk monitoring: Continually checking on identified and new risks, and reviewing the effectiveness of the response strategies.
- Risk control: Adjusting risk strategies and plans as the project progresses and as new risks emerge or existing risks change.
Other important aspects such as reporting and documentation and planning and execution also play a supporting role in the management of project risks.