In what situation would a project manager most likely choose to retain a risk?

A project manager would most likely choose to retain a risk when that risk is very unlikely to occur. Retaining a risk implies accepting the potential consequences without taking any action to avoid or mitigate it. In the context of risk management, this is a practical approach if the probability of the risk happening is low, making the potential impact negligible or manageable if it does occur.

When the likelihood is low, the resources and efforts required to manage or mitigate that risk might outweigh the benefit of taking action. This means the project manager can decide to monitor the situation and only take action if indicators suggest that the risk should be re-evaluated.

In contrast, risks with high likelihood, those that may have severe consequences, or those that can be effectively mitigated typically warrant proactive management strategies to avoid or minimize their impact on the project.