PMI-RMP · Question #325
During a project review meeting, an executive scrutinizes the risk section, including risks on the watch list, and demands action to close them out. What is the executive's risk attitude?
The correct answer is A. Averse. An executive demanding action to close out even watch-list risks demonstrates risk-averse behavior, characterized by a low tolerance for uncertainty and a desire to eliminate risks aggressively.
Question
During a project review meeting, an executive scrutinizes the risk section, including risks on the watch list, and demands action to close them out. What is the executive's risk attitude?
Options
- AAverse
- BSeeking
- CNeutral
- DTolerant
How the community answered
(54 responses)- A80% (43)
- B11% (6)
- C6% (3)
- D4% (2)
Why each option
An executive demanding action to close out even watch-list risks demonstrates risk-averse behavior, characterized by a low tolerance for uncertainty and a desire to eliminate risks aggressively.
Risk aversion is defined as a low tolerance for uncertainty; the executive's insistence on taking action to close out watch-list risks - which are typically low-priority items accepted as residual risk - reflects an unwillingness to accept any level of uncertainty on the project.
Risk seeking describes an attitude that welcomes risk and uncertainty in pursuit of potential gain, which is the opposite of demanding all risks be closed out.
Risk neutral describes a balanced attitude where decisions are made based on expected value without strong bias toward or against risk, not a demand to eliminate all risks regardless of priority.
Risk tolerant describes a high threshold for accepting risk, meaning the individual is comfortable with uncertainty, which directly contradicts the executive's demand for action on low-priority watch-list items.
Concept tested: Risk attitude classification - risk aversion
Source: https://www.pmi.org/pmbok-guide-standards/foundational/pmbok
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