PHR · Question #34
An organization would like to bid on a project, but they don't have enough employees available to complete the work. The organization approaches a competitor with the opportunity to partner on the pro
The correct answer is A. Sharing. Risk sharing is an opportunity response strategy where ownership of a positive risk is transferred or divided with a partner best positioned to help capture it, as seen when two firms jointly bid on a project.
Question
An organization would like to bid on a project, but they don't have enough employees available to complete the work. The organization approaches a competitor with the opportunity to partner on the project to win the work. What type of risk response is used in this instance?
Options
- ASharing
- BMitigation
- CEnhancing
- DTransference
How the community answered
(57 responses)- A84% (48)
- B5% (3)
- C2% (1)
- D9% (5)
Why each option
Risk sharing is an opportunity response strategy where ownership of a positive risk is transferred or divided with a partner best positioned to help capture it, as seen when two firms jointly bid on a project.
Sharing is a positive risk (opportunity) response in which an organization partners with another party to jointly pursue an opportunity neither could fully capture alone. In this scenario, approaching a competitor to co-bid allocates both the workload risk and the potential reward between the two organizations, which is the defining characteristic of a sharing response.
Mitigation is a threat response strategy aimed at reducing the probability or impact of a negative risk, not a strategy for pursuing a positive opportunity through partnership.
Enhancing is an opportunity response that increases the probability or positive impact of an opportunity, but it does not involve transferring or sharing ownership with another organization.
Transference shifts the financial or operational burden of a risk to a third party, such as through insurance or subcontracting, rather than mutually partnering to jointly capture an opportunity.
Concept tested: Positive risk opportunity response strategies - sharing
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