PGMP · Question #113
You are the program manager for a construction program. In this program you are requiring that all workers adhere to the identified safety requirements. Some of the work in the program you've…
The correct answer is C. Transference. Transference is the risk response strategy of shifting the negative impact of a risk to a third party. By outsourcing the dangerous work to a specialist, the program manager is not eliminating the risk - the dangerous work still exists - but the responsibility and consequences…
Question
You are the program manager for a construction program. In this program you are requiring that all workers adhere to the identified safety requirements. Some of the work in the program you've decided is too risky for the program team members so you've hired specialists to manage the dangerous work. The outsourcing of the dangerous work to a specialist is what type of risk response?
Options
- AAvoidance
- BMitigation
- CTransference
- DEnhancing
How the community answered
(21 responses)- A5% (1)
- C86% (18)
- D10% (2)
Explanation
Transference is the risk response strategy of shifting the negative impact of a risk to a third party. By outsourcing the dangerous work to a specialist, the program manager is not eliminating the risk - the dangerous work still exists - but the responsibility and consequences of that risk now belong to the contractor. Avoidance would mean eliminating the risky activity entirely. Mitigation would mean taking steps to reduce the probability or impact of the risk. Enhancing is a positive-risk (opportunity) response used to increase the likelihood or impact of a beneficial event.
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