Rob is the project manager of the IDLK Project for his company. This project has a budget of $5,600,000 and is expected to last 18 months. Rob has learned that a new law may affect how the project is

The correct answer is D. Acceptance. When a new law potentially restricts how a project proceeds and the organization has already heavily invested in it, the most appropriate response is Acceptance. The risk (a legal change) cannot be transferred to another party (it applies to the organization universally), cannot

Security and Privacy Governance, Risk Management, and Compliance Program

Question

Rob is the project manager of the IDLK Project for his company. This project has a budget of $5,600,000 and is expected to last 18 months. Rob has learned that a new law may affect how the project is allowed to proceed - even though the organization has already invested over $750,000 in the project. What risk response is the most appropriate for this instance?

Options

ATransference
BMitigation
CEnhance
DAcceptance

How the community answered

(49 responses)

A
14% (7)
B
2% (1)
C
6% (3)
D
78% (38)

Explanation

When a new law potentially restricts how a project proceeds and the organization has already heavily invested in it, the most appropriate response is Acceptance. The risk (a legal change) cannot be transferred to another party (it applies to the organization universally), cannot be mitigated away (it is a regulatory constraint), and 'Enhance' applies only to opportunities, not threats. Acceptance acknowledges the risk exists and either develops a contingency plan or simply accepts the consequences. Since the legal outcome is uncertain and the project has already invested $750,000, the organization accepts the risk while monitoring the regulatory situation.

Topics

#Risk Response Strategy#Legislative Risk#Acceptance (Risk Response)#Project Risk Management

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