Certified Meeting Professional (CMP) Practice Exam

What three actions can be taken when facing risk?

1. Insure, Monitor, Transfer

2. Accept, Manage, Avoid

3. Evaluate, Control, Ignore

4. Mitigate, Share, Abandon

The correct answer is: Accept, Manage, Avoid

The best actions to take when facing risk include accepting, managing, and avoiding it. Acceptance means recognizing the risk and deciding to proceed with the awareness of that risk, which is often appropriate for risks that are perceived as low impact. Management involves putting strategies and plans in place to monitor and evaluate the risk continuously, allowing for adjustments to minimize potential negative outcomes. Avoidance entails changing plans to sidestep the risk altogether, which is valuable for high-impact risks that can be detrimental to the project or event. The other options each incorporate some useful concepts, but they don't fully capture the comprehensive approach to dealing with risk. For instance, while monitoring is important, simply insuring or transferring risk doesn’t address the need for proactive management and decision-making. Similarly, evaluating and controlling risks are useful, but ignoring them is counterproductive. Mitigating and sharing risk can be effective strategies, but abandoning a risk outright can lead to missed opportunities or incomplete risk assessment. Thus, the combination of accepting, managing, and avoiding risks provides a more balanced and strategic approach to risk management.