Certified Meeting Professional (CMP) Practice Exam

How should risks with high probability and high consequences be handled according to the probability-consequences grid?

1. They should be managed and mitigated

2. They should be avoided

3. They should be ignored

4. They should be accepted

The correct answer is: They should be avoided

When dealing with risks characterized by both high probability and high consequences, the appropriate approach is to avoid these risks whenever possible. This strategy is critical because such risks have the potential to cause significant harm or disruption, impacting not only the event but also the organization as a whole. Managing and mitigating high-probability, high-consequence risks typically involves implementing measures to reduce their occurrence or lessen their impact, which is proactive but may not fully eliminate the risk itself. While mitigation can be part of the overall strategy, outright avoidance is preferable when the consequences are severe. Ignoring these risks is dangerous, as it leaves the organization vulnerable to potential harm. Similarly, accepting these risks implies a tolerance for potential negative outcomes, which may not be feasible or responsible in contexts where the stakes are high. Thus, avoiding risks with high probability and high consequences is a fundamental principle in risk management, emphasizing the need to proactively eliminate potential threats to ensure safety and success in event planning and execution.