What does the process of risk mitigation involve?

The process of risk mitigation fundamentally involves developing plans to manage risks effectively. This entails identifying potential risks, analyzing their impact, and establishing strategies to either minimize their likelihood or lessen their impact, should they occur. A well-structured risk mitigation plan may include measures such as risk avoidance, transfer, acceptance, or reduction, each tailored to the specific nature of the risks and the project's context.

Risk mitigation is crucial in project management as it allows project teams to anticipate challenges and proactively address them, thereby enhancing the chances of project success. By focusing on planning and management, a project can maintain its objectives and deliverables, even in the face of uncertainties.

The other options misrepresent the nature of risk management. Eliminating all risks is often impractical, as some risks are inherent in any project. Ignoring minor risks can lead to significant issues down the line, as they may escalate if not addressed. Lastly, maximizing project costs does not align with effective risk management, which aims to optimize both risk management and project expenses through strategic planning.