CAP · Question #322
Mary is the project manager of the HGH Project for her company. She and her project team have agreed that if the vendor is late by more than ten days they will cancel the order and hire the NBG…
The correct answer is A. Contingent response strategy. A contingent response strategy (also called a contingency plan or fallback plan) is a pre-defined course of action that is only triggered if a specific risk event occurs or a defined trigger condition is met. In this scenario, Mary and her team have agreed in advance that IF…
Question
Mary is the project manager of the HGH Project for her company. She and her project team have agreed that if the vendor is late by more than ten days they will cancel the order and hire the NBG Company to fulfill the order. The NBG Company can guarantee orders within three days, but the costs of their products are significantly more expensive than the current vendor. What type of a response strategy is this?
Options
- AContingent response strategy
- BExpert judgment
- CInternal risk management strategy
- DExternal risk response
How the community answered
(50 responses)- A72% (36)
- B18% (9)
- C4% (2)
- D6% (3)
Explanation
A contingent response strategy (also called a contingency plan or fallback plan) is a pre-defined course of action that is only triggered if a specific risk event occurs or a defined trigger condition is met. In this scenario, Mary and her team have agreed in advance that IF the vendor is late by more than ten days (the trigger), THEN they will cancel the order and use NBG Company (the response). This 'if-then' structure with a clear trigger is the defining characteristic of a contingent response strategy. It differs from a simple risk mitigation or avoidance strategy because it is reactive - it only activates upon a specific event - rather than proactive.
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