CIPS L5M2 Exam - Topic 5 Question 41 Discussion

Actual exam question for CIPS's L5M2 exam

Question #: 41
Topic #: 5

John is a mid-level manager and has created a risk / reward matrix about four potential opportunities at his company White Ducky Limited. He will present his research to a board meeting next week. He has categorised the four opportunities as the following. Which of these opportunities should John recommend the board 'consider'? Select TWO.

Alow risk / high reward

Bhigh risk/ high reward

Clow risk/ low reward

Dhigh risk/ low reward

Show Suggested Answer

Suggested Answer: D

The correct answers are as follows:

The consequences of this risk are huge, therefore the risk should be terminated. This means the cause of the risk is taken away (i.e. the animal testing).

by Loreen at Sep 11, 2024, 04:56 AM

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Kristel

9 months ago

Totally agree, A is the best choice!

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Kanisha

9 months ago

Wait, why would anyone pick B? Seems sketchy.

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Mammie

10 months ago

I’d go with A and C. Low risk is safer.

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Serita

10 months ago

A is a no-brainer, but B seems too risky.

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Leonora

10 months ago

Definitely A and B! High reward is where it's at.

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Jennifer

10 months ago

I agree with Lashaunda, but I’m torn about B. It could be a good opportunity if the potential reward is significant enough.

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Willow

11 months ago

I think we practiced a question similar to this, and it emphasized that low risk/low reward options like C might not be worth pursuing.

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Helga

11 months ago

I'm a bit unsure about B. High risk/high reward sounds tempting, but I feel like it could backfire.

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Lashaunda

11 months ago

I remember we discussed that low risk/high reward options are usually the safest bet, so I think A is definitely one to consider.

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Gennie

11 months ago

This is a good test of our ability to evaluate risk and reward. I'll methodically go through each option and choose the two that seem to strike the best balance.

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Mauricio

11 months ago

I'm a bit confused by the wording of the question. Does "consider" mean we should recommend those two options, or just that the board should think about them? I want to make sure I understand the task correctly.

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Milly

11 months ago

Okay, I've got this. The low risk/high reward option is the clear choice, and I'll also select the high risk/high reward one since the potential upside could be huge.

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Wei

11 months ago

Hmm, I'm a bit unsure about this one. I need to really think through the risk and reward factors for each option before deciding.

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Shanice

11 months ago

This seems like a straightforward risk/reward analysis question. I'll carefully consider the options and select the two that have the best risk/reward profile.

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Cassie

11 months ago

I'm a bit confused by the different options. They all seem to be related to the principle and statement, but the rationales are slightly different. I'll need to carefully read through each one to determine which one is the best fit.

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Lazaro

11 months ago

This is a tricky one. I want to make sure I get the right components, so I'll read through the options carefully and try to eliminate the ones that don't seem as relevant to a risk assessment. Asset and data stuff seem like the way to go.

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Irene

1 year ago

I bet John's presentation to the board is going to be more thrilling than a roller coaster ride. Hopefully, they don't all pass out from the suspense when he gets to option B.

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Steffanie

1 year ago

I agree, John's presentation is going to be intense with these options.

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Willow

1 year ago

B) high risk / high reward could be a game-changer if it pays off.

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Chana

1 year ago

A) low risk / high reward sounds like a safe bet.

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Lashanda

1 year ago

A and B are clear winners here. C and D are like trying to catch a unicorn with a butterfly net - not worth the effort.

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Kattie

1 year ago

I hope the board sees the potential in A and B like we do.

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Adelina

1 year ago

John should definitely recommend A and B to the board.

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Trina

1 year ago

Yeah, C and D don't seem worth the risk compared to A and B.

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Jani

1 year ago

I agree, A and B seem like the best options for sure.

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Jodi

1 year ago

Hmm, I'd have to go with A and B as well. Although, if I were John, I'd probably recommend B just to keep things interesting. Who doesn't love a good high-risk, high-reward situation?

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Johnna

1 year ago

I think B would definitely make the board meeting more exciting, but we have to consider the risks involved.

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Kaycee

1 year ago

I agree, A and B seem like the best options for potential growth.

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Hailey

1 year ago

I agree, A and B are the obvious choices. But I'm curious, what kind of mental gymnastics do you have to do to even consider C or D? Those seem like no-brainers to avoid.

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