Why interviewers ask this question
This question tests judgement under uncertainty: whether you can weigh a genuine trade-off, make a considered decision without complete information, and take ownership of the outcome either way. Interviewers are wary of two extremes: a candidate who describes a reckless decision with no real analysis behind it, and one who claims to never take risks at all, which can read as overly cautious or unwilling to act without total certainty.
How to structure your answer using STAR
Choose a real, calculated risk, one where you weighed the potential upside against a genuine downside and made a deliberate choice, rather than something reckless or accidental. Briefly set up the situation and what was at stake, then spend most of your answer on the action: how you assessed the risk, what specific steps you took to manage or reduce it, and how you made the final call. Close with the result, and be honest if it did not fully pay off; what you learned from a risk that did not work out perfectly is often more convincing than a suspiciously perfect success story.
A strong example answer
"In a previous role, I proposed switching one of our biggest clients to a new reporting process I believed would save significant time, even though it meant deviating from a system that had been in place for years and risked short-term confusion. I mitigated the risk by piloting the new process with a smaller, friendlier client first, gathering feedback, and only then presenting it to the larger client with a clear rollback plan if issues arose. The larger client adopted it within a week with minimal disruption, and the process was later rolled out across three other accounts."
Mistakes to avoid
Avoid describing a risk that was actually reckless or poorly thought through, since interviewers are assessing judgement, not boldness alone. Avoid choosing a risk with no real stakes attached, since it will not demonstrate genuine decision-making under pressure. Do not claim the outcome was perfect if it was not; a genuine account of managing a risk that had a mixed result, with honest reflection, is usually more convincing than an implausibly clean success.