PMI Risk Management Professional Practice Exam

In risk management, what does it mean to "exploit" an opportunity?

1. Reducing the potential impact of a risk

2. Taking advantage of a positive risk to increase project benefits

3. Transferring risk to another party

4. Acknowledging the risk but doing nothing

The correct answer is: Taking advantage of a positive risk to increase project benefits

To "exploit" an opportunity in risk management means to take proactive steps to capitalize on a positive risk or opportunity that arises during the course of a project. By doing this, a project manager seeks to maximize the benefits associated with that opportunity, thereby enhancing the overall success and outcomes of the project. This approach recognizes that not all risks are negative; some can provide advantages or create value if effectively managed. For instance, if a new technology emerges that can significantly expedite production processes, a project manager could choose to integrate this technology into their project strategy. By doing so, they not only mitigate potential adverse impacts but also improve performance and deliver higher value to stakeholders. The other options do not align with the concept of "exploiting" an opportunity. Reducing risk pertains to minimizing adverse effects rather than taking advantage of positive aspects. Transferring risk involves shifting responsibility away from the project, while acknowledging a risk without action does not leverage potential benefits. Therefore, exploiting an opportunity distinctly means leveraging it to achieve better outcomes.