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What encapsulates the concept of risk assessment in change management?

  1. Evaluating potential impacts of proposed changes

  2. Analyzing employee performance

  3. Recording service outages

  4. Budgeting for new projects

The correct answer is: Evaluating potential impacts of proposed changes

The concept of risk assessment in change management fundamentally revolves around evaluating the potential impacts of proposed changes. This involves systematically identifying and analyzing risks associated with changes to services or processes to ensure that any adverse effects are minimized. By assessing these risks, organizations can make informed decisions on whether to proceed with changes, modify them, or possibly delay implementation until further mitigations are considered. In change management, this assessment is crucial because changes can significantly affect service delivery, user experience, and organizational resources. Understanding the potential impacts allows organizations to effectively plan, communicate, and execute changes while maintaining stability and reliability in their services. The other options, such as analyzing employee performance, recording service outages, and budgeting for new projects, do not directly relate to the specific focus of risk assessment within the realm of change management. These activities may form part of broader organizational processes, but they do not encapsulate the critical aspect of evaluating risks associated with changes.