Certified Business Analysis Professional (CBAP) — Question 46

A popular department store chain wants to make computer upgrades as well as conduct a major remodeling effort to increase revenue to all their 100 stores over the next 2 years. The remodeling will occur in two phases. The two phases are required at each store and can be completed in any order, but each phase must be fully completed before the next phase can begin. Phase 1 will take approximately 32 weeks and will not require a store to be temporarily closed. Phase 2 will take approximately 20 weeks and will require a store to be temporarily closed.
In order to keep inventory level and total revenue for the department store chain at an operational level, 75% of the stores must remain open to the public at all times. Against the board of director's advice, the Chief Executive Officer (CEO) made a decision to start and complete the top 25 revenue-producing stores in the first year to get those stores remodeled and fully operational.
A business analyst (BA) has been brought in to help with planning the project and gathering requirements.
Based on the CEO's executive decision, which risk tolerance attitude is the CEO exhibiting?

Answer options

Correct answer: A

Explanation

The CEO is exhibiting a 'Seeking' risk tolerance attitude by opting to focus on the top 25 revenue-producing stores despite the potential risks involved, such as temporarily closing stores. This decision reflects a willingness to take risks to achieve a greater reward, as opposed to 'Avoidance', which would imply steering clear of risks altogether, 'Mitigation', which involves reducing risk impact, or 'Neutrality', which indicates a balanced approach without preference.