PGMP · Question #49
You are the program manager for your organization. Management is considering a new program but they are worried about the program risks that may affect the program success. You know that there are…
The correct answer is A. Transference. Transference is a negative risk response strategy in which the financial impact or ownership of a risk is shifted to a third party, such as hiring an insurance company, a subcontractor, or a specialist firm to own and manage the risk. The key indicator in the question is 'hire…
Question
You are the program manager for your organization. Management is considering a new program but they are worried about the program risks that may affect the program success. You know that there are three positive risks responses and three negative risk responses that each risk can have. Management asks you which risk response would be most appropriate for a large risk event if they wanted to hire a third-party to own the risk event for the program. What risk event is most appropriate?
Options
- ATransference
- BMitigation
- CAvoidance
- DSharing
How the community answered
(60 responses)- A95% (57)
- B3% (2)
- C2% (1)
Explanation
Transference is a negative risk response strategy in which the financial impact or ownership of a risk is shifted to a third party, such as hiring an insurance company, a subcontractor, or a specialist firm to own and manage the risk. The key indicator in the question is 'hire a third-party to own the risk event.' Mitigation (B) reduces the probability or impact of a risk but keeps ownership internal. Avoidance (C) eliminates the risk by changing the plan. Sharing (D) is a positive risk (opportunity) response where the benefit of an upside event is shared with another party - it is not used for threats.
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