CCBA · Question #463
A long-established company selling ice cream is entering its crucial sales period leading up to summer. Based on the company's risk tolerance, a business analyst (BA) has advised against replacing…
The correct answer is C. Risk-averse. Risk-averse means having a low tolerance for risk and preferring to avoid uncertainty or potential losses. This describes the company's attitude toward risk, as they do not want to experiment with new flavors that might affect their sales. Risk-neutral means being indifferent…
Question
A long-established company selling ice cream is entering its crucial sales period leading up to summer. Based on the company's risk tolerance, a business analyst (BA) has advised against replacing the most popular flavors with new untested flavors. What is the company's attitude toward risk, as assessed by the BA?
Options
- ARisk-neutral
- BRisk-optimizing
- CRisk-averse
- DRisk-soaking
How the community answered
(38 responses)- A3% (1)
- C92% (35)
- D5% (2)
Explanation
Risk-averse means having a low tolerance for risk and preferring to avoid uncertainty or potential losses. This describes the company's attitude toward risk, as they do not want to experiment with new flavors that might affect their sales. Risk-neutral means being indifferent to risk and basing decisions on expected outcomes. Risk-optimizing means having a high tolerance for risk and seeking opportunities for reward. Risk-soaking means being willing to accept losses or negative consequences of risk. Reference: BABOK Guide v3, page 12; CCBA Mock Test, question 10
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