PMI Risk Management Professional (PMI-RMP) — Question 90

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 an emergency mode, and deploying quickly. Secondly, those who work efficiently are getting the most attention and recognition for their efforts.
What impact does this observation potentially have on the risk management process?

Answer options

Correct answer: B

Explanation

The correct answer is B because a culture that primarily rewards reactive 'fire-fighter' behavior discourages proactive risk management efforts. Options A and C are incorrect as they underestimate the influence of the reward system on behavior, while D misinterprets the implications of the current reward structure, suggesting it is beneficial when it actually undermines long-term risk management.