What is the difference between reactive and proactive risk management?

• A. Reactive prevents problems; proactive ignores issues.
• B. Reactive addresses issues after they occur; proactive anticipates and prevents problems through systems and culture.
• C. Proactive addresses issues after they occur; reactive prevents problems.
• D. Reactive and proactive are the same.

Answer: (B)

The main idea is timing and approach to handling risk. Reactive risk management waits for problems to show up and then responds, fixes, and recovers after the issue occurs. Proactive risk management, on the other hand, anticipates potential problems and prevents them from happening by embedding risk thinking into everyday operations—through systems, controls, training, monitoring, and a safety- or risk-aware culture. This includes things like risk assessments, early warning indicators, preventive maintenance, and contingency planning. That combination of foresight and preventive action is what makes proactive management the best description of the difference.