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CIPS L5M2 Exam - Topic 5 Question 41 Discussion

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

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.

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).


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37 comments · newest first
KR
Kristel 11 months ago
Totally agree, A is the best choice!
KA
Kanisha 11 months ago
Wait, why would anyone pick B? Seems sketchy.
MA
Mammie 12 months ago
I’d go with A and C. Low risk is safer.
SE
Serita 12 months ago
A is a no-brainer, but B seems too risky.
LE
Leonora 1 year ago
Definitely A and B! High reward is where it's at.
JE
Jennifer 1 year ago
I agree with Lashaunda, but I’m torn about B. It could be a good opportunity if the potential reward is significant enough.
WI
Willow 1 year 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.
HE
Helga 1 year ago
I'm a bit unsure about B. High risk/high reward sounds tempting, but I feel like it could backfire.
LA
Lashaunda 1 year 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.
GE
Gennie 1 year 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.
MA
Mauricio 1 year 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.
MI
Milly 1 year 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.
WE
Wei 1 year 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.
SH
Shanice 1 year 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.
CA
Cassie 1 year 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.
LA
Lazaro 1 year 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.
IR
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.
ST
Steffanie 1 year ago
↳ replying to Irene
I agree, John's presentation is going to be intense with these options.
WI
Willow 1 year ago
↳ replying to Irene
B) high risk / high reward could be a game-changer if it pays off.
CH
Chana 1 year ago
↳ replying to Irene
A) low risk / high reward sounds like a safe bet.
LA
Lashanda 2 years 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.
KA
Kattie 1 year ago
↳ replying to Lashanda
I hope the board sees the potential in A and B like we do.
AD
Adelina 1 year ago
↳ replying to Lashanda
John should definitely recommend A and B to the board.
TR
Trina 1 year ago
↳ replying to Lashanda
Yeah, C and D don't seem worth the risk compared to A and B.
JA
Jani 1 year ago
↳ replying to Lashanda
I agree, A and B seem like the best options for sure.
JO
Jodi 2 years 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?
JO
Johnna 1 year ago
↳ replying to Jodi
I think B would definitely make the board meeting more exciting, but we have to consider the risks involved.
KA
Kaycee 2 years ago
↳ replying to Jodi
I agree, A and B seem like the best options for potential growth.
HA
Hailey 2 years 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.
SH
Shawn 2 years ago
I think John should also consider high risk / low reward. Sometimes taking a calculated risk can lead to unexpected gains.
HA
Harrison 2 years ago
I agree with Aron. Those two options have the potential for the highest returns.
WE
Weldon 2 years ago
A and B seem like the best options to consider. I'd lean towards A, as it offers the highest potential return with the least risk.
CE
Cecily 2 years ago
↳ replying to Weldon
Definitely, it's all about finding the right balance between risk and reward.
TI
Tiffiny 2 years ago
↳ replying to Weldon
True, but we need to weigh the risks carefully before making a decision.
KI
Kina 2 years ago
↳ replying to Weldon
But B could also be worth considering for the high reward.
CH
Charlene 2 years ago
↳ replying to Weldon
I agree, A does seem like a safe bet with a good payoff.
AR
Aron 2 years ago
I think John should recommend low risk / high reward and high risk / high reward.
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