The stakeholder is unwilling to make decisions that would result in negative consequences to the project. Which of the following describes the stakeholders attitude regarding project risks?

The correct answer is A. Risk averse. A stakeholder who is unwilling to make decisions that could result in negative consequences is demonstrating risk-averse behavior. Risk aversion is characterized by a preference to avoid negative outcomes, often at the cost of potential gains or project progress. This is distinct

Stakeholder Engagement

Question

Options

ARisk averse
BRisk neutral
CRisk accepting
DNot enough information available to describe the stakeholder's risk attitude.

How the community answered

(53 responses)

A
94% (50)
C
2% (1)
D
4% (2)

Explanation

A stakeholder who is unwilling to make decisions that could result in negative consequences is demonstrating risk-averse behavior. Risk aversion is characterized by a preference to avoid negative outcomes, often at the cost of potential gains or project progress. This is distinct from being risk neutral (B), which means decisions are made based purely on expected value without emotional weighting, or risk accepting (C), which means tolerating risk without action. The description in the question clearly aligns with risk aversion - the stakeholder avoids any choice that carries downside potential.

Topics

#Risk attitude#Risk aversion#Stakeholder preferences#Risk tolerance

Community Discussion

No community discussion yet for this question.

Full PMI-RMP Practice