A business analyst (BA) working with a large insurance corporation interviewed an industry thought leader who predicted that many of the regulations currently imposed by the government will change very soon. The BA communicated the observation to the leadership team of the organization because many on-going projects were triggered by those regulations. The leadership team unanimously decided to cancel the initiatives that were driven by the government regulations.
What is the corporation’s attitude towards risk?
A . Risk Neutral
B . Risk Averse
C . Risk Tolerant
D . Risk Seeking
Answer: B
Explanation:
Risk seeking: When a company is risk-seeking, it means that they are willing to take on more risk as long as a higher potential value will be achieved, perhaps even seeking higher risks for a higher-value return.