CAP · Question #19
Adrian is the project manager of the NHP Project. In her project there are several work packages that deal with electrical wiring. Rather than to manage the risk internally she has decided to hire a…
The correct answer is B. Transference. Risk transference shifts the financial or operational impact of a risk to a third party - typically through outsourcing, contracts, or insurance. By hiring a licensed electrical vendor to take over the electrical wiring work packages, Adrian has transferred the risk and its…
Question
Adrian is the project manager of the NHP Project. In her project there are several work packages that deal with electrical wiring. Rather than to manage the risk internally she has decided to hire a vendor to complete all work packages that deal with the electrical wiring. By removing the risk internally to a licensed electrician Adrian feels more comfortable with project team being safe. What type of risk response has Adrian used in this example?
Options
- AMitigation
- BTransference
- CAvoidance
- DAcceptance
How the community answered
(52 responses)- A2% (1)
- B92% (48)
- C2% (1)
- D4% (2)
Explanation
Risk transference shifts the financial or operational impact of a risk to a third party - typically through outsourcing, contracts, or insurance. By hiring a licensed electrical vendor to take over the electrical wiring work packages, Adrian has transferred the risk and its consequences away from the internal project team to the vendor. This is not mitigation (which reduces probability/impact but keeps the risk internally), not avoidance (which eliminates the risk entirely by changing scope/plan), and not acceptance (which acknowledges the risk without action to transfer it).
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