What type of error occurs due to a discretionary decision that unnecessarily increases risk?

• A. Performance error
• B. Decision error
• C. Operational error
• D. Judgment error

Answer: (B)

The correct choice identifies a discretionary decision that leads to an increase in risk as a decision error. Such errors occur when a choice is made based on insufficient information, flawed reasoning, or a lack of consideration for potential consequences, resulting in outcomes that elevate risk levels unnecessarily.

In this context, decision errors emphasize the aspect of judgment and reasoning in the decision-making process. They highlight the importance of evaluating risks and the impact of choices, suggesting that a lack of careful analysis or an ill-considered approach can lead to negative outcomes. Recognizing this type of error is crucial in risk management, as it stresses the need for informed decision-making and careful assessment of potential consequences.

This choice also reflects an understanding that while other types of errors exist—such as performance errors related to execution of tasks, operational errors regarding the processes, and judgment errors focusing on the reasoning behind decisions—this particular scenario is best categorized under decision errors due to the explicit focus on the decision-making aspect and the discretionary nature of the action taken.