CGRC · Question #672
Eric is the project manager of the MTC project for his company. In this project a vendor has offered Eric a sizeable discount on all hardware if his order total for the project is more than…
The correct answer is C. Sharing. Eric leverages a vendor discount by collaborating with other project managers to consolidate hardware orders, meeting the minimum purchase threshold for cost savings. This strategy, where an opportunity is shared to achieve mutual benefit, is a positive risk response.
Question
Eric is the project manager of the MTC project for his company. In this project a vendor has offered Eric a sizeable discount on all hardware if his order total for the project is more than $125,000. Right now, Eric is likely to spend $118,000 with vendor. If Eric spends $7,000 his cost savings for the project will be $12,500, but he cannot purchase hardware if he cannot implement the hardware immediately due to organizational policies. Eric consults with Amy and Allen, other project managers in the organization, and asks if she needs any hardware for their projects. Both Amy and Allen need hardware and they agree to purchase the hardware through Eric's relationship with the vendor. What positive risk response has happened in this instance? Response:
Options
- ATransference
- BExploiting
- CSharing
- DEnhancing
How the community answered
(22 responses)- B5% (1)
- C86% (19)
- D9% (2)
Why each option
Eric leverages a vendor discount by collaborating with other project managers to consolidate hardware orders, meeting the minimum purchase threshold for cost savings. This strategy, where an opportunity is shared to achieve mutual benefit, is a positive risk response.
Transference is a negative risk response that shifts the responsibility for a threat or risk to a third party.
Exploiting is a positive risk response where an organization tries to ensure an opportunity definitely happens, often by assigning resources to maximize its impact.
Sharing is a positive risk response strategy where an opportunity or a benefit-generating risk is distributed among multiple parties who can best capture it for their mutual advantage. In this scenario, Eric shares the opportunity to obtain a significant hardware discount with Amy and Allen, allowing all involved projects to collectively meet the vendor's threshold and realize cost savings.
Enhancing is a positive risk response where the probability or impact of an opportunity is increased through various proactive measures.
Concept tested: Project risk management- positive risk responses
Topics
Community Discussion
No community discussion yet for this question.