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(ISC)2

CAP · Question #281

You are the project manager for GHY Project and are working to create a risk response for a negative risk. You and the project team have identified the risk that the project may not complete on…

The correct answer is C. Transference. Hiring an external writer to handle the user guide shifts responsibility for the risk to a third party, which is the definition of risk transference.

Security and Privacy Governance, Risk Management, and Compliance Program

Question

You are the project manager for GHY Project and are working to create a risk response for a negative risk. You and the project team have identified the risk that the project may not complete on time, as required by the management, due to the creation of the user guide for the software you're creating. You have elected to hire an external writer in order to satisfy the requirements and to alleviate the risk event. What type of risk response have you elected to use in this instance?

Options

  • ASharing
  • BAvoidance
  • CTransference
  • DExploiting

How the community answered

(16 responses)
  • B
    6% (1)
  • C
    88% (14)
  • D
    6% (1)

Why each option

Hiring an external writer to handle the user guide shifts responsibility for the risk to a third party, which is the definition of risk transference.

ASharing

Sharing is a risk response strategy reserved for positive risks (opportunities), used to allocate ownership of an opportunity to a party best positioned to realize its benefit.

BAvoidance

Avoidance involves changing the project plan to eliminate the threat entirely, such as removing the user guide from scope or extending the deadline, rather than outsourcing the work.

CTransferenceCorrect

Risk transference moves the financial and operational responsibility for a negative risk to a third party such as a vendor or contractor. By hiring an external writer, the project manager delegates the risk of late user guide delivery outside the team. The external party now bears the consequence if the work is not completed on time.

DExploiting

Exploiting is a positive risk response strategy aimed at ensuring an opportunity actually occurs, and is not applicable to negative risks.

Concept tested: Negative risk response strategy - transference

Source: https://www.pmi.org/learning/library/risk-response-planning-negative-positive-9723

Topics

#Risk Management#Risk Response#Transference

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