You are the project manager for a construction project. The project involves casting of a column in a very narrow space. Because of lack of space, casting it is highly dangerous. High technical skill

The correct answer is C. Transference. Transference is a risk response strategy where the financial or operational impact of a risk is shifted to a third party. By hiring a local expert team to handle the dangerous column casting, you are transferring the risk - and the responsibility for managing it - to that externa

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Question

You are the project manager for a construction project. The project involves casting of a column in a very narrow space. Because of lack of space, casting it is highly dangerous. High technical skill will be required for casting that column. You decide to hire a local expert team for casting that column. Which of the following types of risk response are you following?

Options

AMitigation
BAvoidance
CTransference
DAcceptance

How the community answered

(36 responses)

A
17% (6)
B
3% (1)
C
75% (27)
D
6% (2)

Explanation

Transference is a risk response strategy where the financial or operational impact of a risk is shifted to a third party. By hiring a local expert team to handle the dangerous column casting, you are transferring the risk - and the responsibility for managing it - to that external team. The risk itself does not disappear; it is simply owned by someone else. This is commonly done through contracts, outsourcing, or insurance. Mitigation would mean reducing the probability or impact of the risk (e.g., redesigning the space). Avoidance would mean eliminating the risk entirely (e.g., changing the design to not require that column). Acceptance would mean acknowledging the risk and proceeding without specific action.

Topics

#Risk Management#Risk Response#Risk Transference

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