CSSLP · Question #200
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…
The correct answer is D. Transference. Adrian has employed risk transference by hiring a vendor to handle electrical wiring work, thereby shifting the responsibility and potential negative impact of associated risks to an external party. This strategy moves the risk from the project team to a third-party specialist.
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?
Options
- AAcceptance
- BAvoidance
- CMitigation
- DTransference
How the community answered
(29 responses)- A14% (4)
- B3% (1)
- C10% (3)
- D72% (21)
Why each option
Adrian has employed risk transference by hiring a vendor to handle electrical wiring work, thereby shifting the responsibility and potential negative impact of associated risks to an external party. This strategy moves the risk from the project team to a third-party specialist.
Risk acceptance involves acknowledging the risk and deciding to take no action, which is contrary to hiring a vendor to manage it.
Risk avoidance involves eliminating the threat entirely, which is not what Adrian did, as the electrical work still needs to be done.
Risk mitigation involves reducing the probability or impact of a risk, which is different from handing off the entire risk to another entity.
Risk transference involves shifting the responsibility for a risk, and its potential impact, to a third party, such as by hiring a specialist vendor or purchasing insurance.
Concept tested: Project risk response strategies - Transference
Source: https://www.pmi.org/pmbok-guide-standards/foundational/pmbok/project-risk-management
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