Project Management Professional (PMP) Exam Practice – Question1606

Assume that you are working on a new product for your firm. Your CEO learned that a competitor was about to launch a new product that has similar features to those of your project. The competitor plans to launch the product on September 1. It is now March 1.
Your schedule called for you to launch your product on December 1. Your CEO now has now mandated that you fast track your project so you can launch your product on August 1. This fast track schedule is an example of an______________


A. Unknown risk
B. A risk taken to achieve a reward
C. A response that requires sharing the risk
D. A passive avoidance strategy

Correct Answer: B

Explanation:

Explanation:
Project risk has its origin in the uncertainty that is present in all projects. Organizations and stakeholders are willing to accept varying degrees of risk, and risks that are threats to the project may be accepted if the risks are within tolerances and are in balance with
the rewards to be gained. This example of adopting a fast-track schedule is a risk taken to achieve the reward created by the earlier completion date.