CGRC Question #263: Real Exam Question with Answer & Explanation

Question

Adrian is the project manager of the NHP Project. In her project there are several work packages that deal with electrical wiring. Rather than to manage the risk internally she has decided to hire a vendor to complete all work packages that deal with the electrical wiring. By removing the risk internally to a licensed electrician Adrian feels more comfortable with project team being safe. What type of risk response has Adrian used in this example? Response:

Options

• AMitigation
• BTransference
• CAvoidance
• DAcceptance

Explanation

Adrian has employed risk transference by hiring an external vendor to handle the electrical wiring work packages, thereby shifting the responsibility and associated risks of electrical work to a third party. This action transfers the potential safety and project risks to the specialized contractor.

Common mistakes.

• A. Mitigation involves reducing the likelihood or impact of a risk, not shifting it entirely to another party.
• C. Avoidance involves eliminating the risk entirely by changing the project plan or scope, which is not what Adrian did as the work still needs to be done.
• D. Acceptance involves acknowledging the risk and choosing to do nothing about it, which is contrary to Adrian's proactive decision to hire a vendor.

Concept tested. Risk response strategies - transference

Reference. https://www.nist.gov/itl/smallbusinesscyber/guidance-topic-areas/risk-management/risk-treatment

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