When analyzing the reward system in a company, there is evidence that "fire-fighter behavior" is the highest rewarded behavior. It suggests that people are dealing with major problems primarily in…

Question

Options

• ANothing, since the reward system does not have any impact on the risk management process.
• BIt means that this company's culture does not reward all people, and it gives little attention to
• CIt does not matter as each project has its own rewards system with no relationship to the
• DThis is a positive situation for risk management, since it encourages quick deployment of

• A
  11% (2)
• B
  61% (11)
• C
  6% (1)
• D
  22% (4)

Explanation

Option B is correct because a culture that rewards "fire-fighting" (reactive crisis response) and individual efficiency implicitly discourages proactive risk identification and prevention. Employees learn that preventing problems quietly earns no recognition, so they have little incentive to manage risks before they escalate - undermining the entire risk management process, which depends on early identification and mitigation.

Why the distractors are wrong:

• A is wrong because organizational culture and reward systems directly shape employee behavior, including how seriously they engage with risk management practices.
• C is wrong because project-level rewards don't exist in isolation - the broader company culture and its incentive signals influence how all project team members prioritize risk activities.
• D is wrong because quick deployment in emergency mode is reactive, not proactive; good risk management aims to prevent emergencies, not glorify responding to them.

Memory tip: Think of it as the "hero vs. guardian" problem - a culture that rewards heroes (fire-fighters) punishes guardians (risk managers who prevent fires from starting). If nobody notices the fire that never happened, prevention goes unrewarded and risk management erodes.

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