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

The correct answer is C. Risk-averse. The company isrisk-aversebecause itprefers to avoid uncertain changes (such as replacing popular flavors) during a critical sales period. BABOK® Guide (Chapter 10.37 - Risk Analysis and Management)states thatrisk-averse organizations prioritize stability and prefer low-risk decis

Strategy Analysis

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-optimizing
BRisk-neutral
CRisk-averse
DRisk-seeking

How the community answered

(52 responses)

A
8% (4)
B
4% (2)
C
87% (45)
D
2% (1)

Explanation

The company isrisk-aversebecause itprefers to avoid uncertain changes (such as replacing popular flavors) during a critical sales period. BABOK® Guide (Chapter 10.37 - Risk Analysis and Management)states thatrisk-averse organizations prioritize stability and prefer low-risk decisions over potential high-reward changes. Risk-optimizing (Option A)seeks to balance risks and rewards but does not necessarily avoid risk. Risk-neutral (Option B)accepts risks but does not actively avoid them. Risk-seeking (Option D)involves actively pursuing high-risk opportunities.

Topics

#risk tolerance#risk attitude#risk-averse#business risk

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