CAP · Question #45
You work as the project manager for Bluewell Inc. You are working on NGQQ Projectyou're your company. You have completed the risk analysis processes for the risk events. You and the project team…
The correct answer is C. Risk transference. Risk Transference is the strategy of shifting the negative impact of a risk, along with the ownership of the response, to a third party. Common mechanisms include insurance policies, performance bonds, warranties, guarantees, and fixed-price contracts. It does not eliminate the…
Question
You work as the project manager for Bluewell Inc. You are working on NGQQ Projectyou're your company. You have completed the risk analysis processes for the risk events. You and the project team have created risk responses for most of the identified project risks. Which of the following risk response planning techniques will you use to shift the impact of a threat to a third party, together with the responses?
Options
- ARisk acceptance
- BRisk avoidance
- CRisk transference
- DRisk mitigation
How the community answered
(61 responses)- A3% (2)
- B2% (1)
- C93% (57)
- D2% (1)
Explanation
Risk Transference is the strategy of shifting the negative impact of a risk, along with the ownership of the response, to a third party. Common mechanisms include insurance policies, performance bonds, warranties, guarantees, and fixed-price contracts. It does not eliminate the risk - it transfers financial or operational responsibility to another party. This contrasts with: Avoidance (eliminating the risk entirely), Mitigation (reducing probability or impact), and Acceptance (acknowledging the risk without active response).
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