Certified Business Analysis Professional (CBAP) Practice Test 2025 - Free CBAP Practice Questions and Study Guide

An organization that is defined as risk-seeking actively embraces uncertain outcomes in pursuit of high rewards. This means they are willing to engage in endeavors that have a significant potential for losses, as long as the possibility for substantial gains exists. This characteristic is often evident in organizations that invest in startups, venture capital, or innovative projects where the likelihood of failure is high, but so are the potential returns.

This approach is rooted in the belief that greater risks can lead to greater rewards, which aligns with certain business strategies that prioritize growth and innovation over stability. In contrast, the other options suggest more cautious or limited approaches to risk that do not align with a risk-seeking mentality. For example, seeking only positive risk events implies a preference for low-risk opportunities, and accepting risk events only when probability and impact are low indicates a more risk-averse stance. Avoiding high risks for more certain outcomes directly contradicts the essence of being risk-seeking. Therefore, embracing high risks for the prospect of high rewards distinctly characterizes a risk-seeking organization.