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(ISC)2

CAP · Question #115

You are the project manager for your organization. You have determined that an activity is too dangerous to complete internally so you hire licensed contractor to complete the work. The contractor…

The correct answer is A. Secondary risk. Hiring a contractor to handle dangerous work is a transference response, but the new risk that the contractor may not finish on time is a secondary risk - a risk created as a result of implementing a risk response.

Security and Privacy Governance, Risk Management, and Compliance Program

Question

You are the project manager for your organization. You have determined that an activity is too dangerous to complete internally so you hire licensed contractor to complete the work. The contractor, however, may not complete the assigned work on time which could cause delays in subsequent work beginning. This is an example of what type of risk event?

Options

  • ASecondary risk
  • BTransference
  • CInternal
  • DPure risk

How the community answered

(36 responses)
  • A
    72% (26)
  • B
    3% (1)
  • C
    17% (6)
  • D
    8% (3)

Why each option

Hiring a contractor to handle dangerous work is a transference response, but the new risk that the contractor may not finish on time is a secondary risk - a risk created as a result of implementing a risk response.

ASecondary riskCorrect

A secondary risk is a risk that arises directly as a result of implementing a risk response. In this scenario, hiring the contractor was the transference response to the original danger risk, and the new risk of contractor delays is a secondary risk produced by that response. Secondary risks must be identified and planned for just like original risks.

BTransference

Transference describes the original risk response strategy of hiring the contractor, not the new risk event that the contractor may cause delays.

CInternal

Internal risk refers to risks originating from within the project team or organization - contractor delay is an external risk introduced by the risk response.

DPure risk

Pure risk refers to a risk with only a negative outcome (no upside), which does not describe the classification of how this risk was created.

Concept tested: Secondary risks resulting from risk responses

Source: https://www.pmi.org/pmbok-guide-standards/foundational/pmbok

Topics

#Risk Management#Secondary Risk#Risk Transference#Project Management

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