CAP · Question #76
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 C. Contingent response strategy. A Contingent Response Strategy (also called a contingency plan) is a pre-defined action that is only triggered when a specific condition - known as a risk trigger - occurs. In this case, the trigger is the vendor being late by more than 10 days, and the pre-planned contingency…
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
- AExternal risk response
- BInternal risk management strategy
- CContingent response strategy
- DExpert judgment
How the community answered
(40 responses)- A5% (2)
- B3% (1)
- C83% (33)
- D10% (4)
Explanation
A Contingent Response Strategy (also called a contingency plan) is a pre-defined action that is only triggered when a specific condition - known as a risk trigger - occurs. In this case, the trigger is the vendor being late by more than 10 days, and the pre-planned contingency is switching to NBG Company. The response is not executed proactively; it waits for the triggering event. This differs from general risk mitigation (reducing probability/impact in advance) or transference (shifting responsibility). It is a reactive, trigger-based response plan.
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