ITIL 4 Foundation Practice Exam

In the context of ITIL, what does 'risk' encompass?

1. Only negative outcomes of business processes

2. Only uncertainties related to service costs

3. Both positive and negative uncertainties regarding outcomes

4. Only risks associated with compliance

The correct answer is: Both positive and negative uncertainties regarding outcomes

In ITIL, 'risk' encompasses both positive and negative uncertainties regarding outcomes, reflecting a broader understanding that includes opportunities as well as threats. This definition captures the comprehensive nature of risk management within the ITIL framework, recognizing that risks can lead to adverse effects, such as failures or losses, but they can also present opportunities for value creation or improvement. By considering risks in this dual capacity, organizations can develop more effective strategies to manage uncertainties. They are encouraged to identify not only potential threats that could disrupt services or business processes but also opportunities that could result in better service delivery or enhanced performance. This holistic approach aligns with ITIL's emphasis on creating value and supports informed decision-making that balances potential risks with expected benefits.