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Problem management is the practice of identifying and managing the causes of incidents.

A problem is a cause or potential cause of one or more incidents.

The purpose of problem management is to reduce the likelihood and impact of incidents by identifying and addressing root causes.

Problem management includes activities such as root cause analysis and the creation of known error records.

Problem management may involve both reactive and proactive activities.

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2. How This Applies to TakeCars (Car Rental Marketplace)

This practice explains how TakeCars stops the same failures from happening again, rather than just fixing them repeatedly.

a) Problem vs incident at TakeCars (critical distinction)

• Incident
  • A host cancels today
  • A car breaks down on a trip
• Problem
  • A specific host cancels repeatedly
  • A vehicle model has recurring mechanical issues
  • Pickup instructions are consistently unclear in one city

Incident management fixes today.
Problem management fixes tomorrow.

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b) Reactive problem management at TakeCars

Triggered after incidents occur repeatedly.

Examples:

• Multiple last-minute cancellations by the same host
• Repeated “no-show” incidents at the same pickup location
• Frequent payment failures with one provider

Actions:

• Root cause analysis
• Policy changes
• Host restrictions or removal
• Process redesign

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c) Proactive problem management at TakeCars

Looks for risks before incidents spike.

Examples:

• Identifying hosts with declining response times
• Detecting seasonal risk patterns
• Reviewing near-miss incidents

Proactive work reduces future incident volume.

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d) Known errors and workarounds (exam nuance)

Once a root cause is known:

• A known error is recorded
• A workaround may be documented

For TakeCars:

• “This host often cancels; avoid same-day bookings”
• “This location needs manual confirmation during holidays”

This supports faster incident resolution until a permanent fix is applied.

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e) Exam-critical insight

If the exam asks:

“What is the purpose of problem management?”

Correct logic:

• Identify and manage causes of incidents
• Reduce likelihood and impact of future incidents
• Focus on root causes

Answers focusing on restoring service quickly belong to incident management.

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3. Key Things to Read / Remember Right Before the Exam

Problem management (very high probability)

• A service management practice
• Addresses causes of incidents
• Uses root cause analysis
• Reduces future incidents

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Incident vs problem (must be crystal clear)

• Incident = unplanned interruption
• Problem = underlying cause

If an answer mentions “root cause”, it is problem management.

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Common exam traps

• Problem management restores service → False
• Problems are the same as incidents → False
• Problem management is only reactive → False

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One-line memory hook

Problem management removes the causes so incidents stop recurring.

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