CISSP-ISSMP · Question #200
You work as the project manager for Bluewell Inc. You are working on NGQQ Project for your company. You have completed the risk analysis processes for the risk events. You and the project team have…
The correct answer is D. Risk transference. Risk transference involves shifting the financial or operational impact of a risk to a third party, along with the ownership of the response. Classic examples include purchasing insurance, using fixed-price contracts, or outsourcing risky activities to vendors. The third party…
Question
You work as the project manager for Bluewell Inc. You are working on NGQQ Project for 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 mitigation
- BRisk acceptance
- CRisk avoidance
- DRisk transference
How the community answered
(39 responses)- A3% (1)
- B3% (1)
- C5% (2)
- D90% (35)
Explanation
Risk transference involves shifting the financial or operational impact of a risk to a third party, along with the ownership of the response. Classic examples include purchasing insurance, using fixed-price contracts, or outsourcing risky activities to vendors. The third party assumes the burden if the risk event occurs. Risk mitigation (A) reduces the probability or impact of a risk. Risk acceptance (B) means acknowledging the risk and doing nothing proactive. Risk avoidance (C) eliminates the risk by changing the plan. Only Risk transference (D) specifically shifts the impact - along with responsibility - to an outside party.
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