Certified Meeting Professional (CMP) Practice Exam

When faced with a medium probability and medium consequences according to the probability-consequences grid, what is the best action?

1. Ignore the risk

2. Manage and mitigate the risk

3. Transfer the risk through contracts

4. Accept the risk as it is

The correct answer is: Manage and mitigate the risk

When assessing risks that fall into the medium probability and medium consequences category, the most prudent action is to manage and mitigate the risk. This approach allows for proactive measures to be taken to reduce the likelihood of the event occurring or to lessen its impact should it take place. Risk management is essential in event planning, as it helps ensure safety, compliance, and overall success. By managing and mitigating the risk, event professionals can implement strategies such as refining processes, enhancing training, preparing contingency plans, or increasing communication among team members and stakeholders. These strategies are especially important for risks that can result in significant interruption or financial loss, and addressing them helps protect the organization and its reputation. The other potential actions, like ignoring the risk or accepting it outright, could expose the organization to unnecessary vulnerabilities. Transferring risk through contracts might be more suitable for higher risks or when the consequences would pose a greater threat to the event's success. However, in this scenario, the medium-level assessment necessitates a more engaged response, making management and mitigation the optimal choice.