A part of a project deals with the hardware work. As a project manager, you have decided to hire a company to deal with all hardware work on the project. Which type of risk response is this?
Suggested Answer:A🗳️
When you are hiring a third party to own risk, it is known as transference risk response. Risk transfer means that impact of risk is reduced by transferring or otherwise sharing a portion of the risk with an external organization or another internal entity. Transfer of risk can occur in many forms but is most effective when dealing with financial risks. Insurance is one form of risk transfer. Incorrect Answers: B: The act of spending money to reduce a risk probability and impact is known as mitigation. C: When extra activities are introduced into the project to avoid the risk, this is an example of avoidance. D: Exploit is a strategy that may be selected for risks with positive impacts where the organization wishes to ensure that the opportunity is realized.
Answer is B (Mitigation), even if you outsource the work the ACCOUNTABILITY is still you. In transference, the third party will shoulder the burden of risk..
@Altamoo7, it's not mitigation because the mitigation approach means you're decided to deal with the risk directly whereas in this case you're passing on the tasks to someone else.
The key difference is passing on the risk to someone else to deal with.
upvoted 6 times
...
...
Log in to ExamTopics
Sign in:
Community vote distribution
A (35%)
C (25%)
B (20%)
Other
Most Voted
A voting comment increases the vote count for the chosen answer by one.
Upvoting a comment with a selected answer will also increase the vote count towards that answer by one.
So if you see a comment that you already agree with, you can upvote it instead of posting a new comment.
dummee
3 days, 5 hours agoNdy
6 months, 2 weeks agoParth9
2 years, 10 months agoaltamoo7
3 years, 2 months agoWedeyhere2
2 years, 11 months ago