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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.

Risk Strategy and Planning

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)
  • A
    80% (43)
  • B
    11% (6)
  • C
    6% (3)
  • D
    4% (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.

AAverseCorrect

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.

BSeeking

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.

CNeutral

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.

DTolerant

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

Topics

#Risk attitude#Stakeholder risk tolerance#Risk aversion#Watch list management

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