PK0-003 · Question #196
The customer has agreed to pay 20% more for the project deliverable if it can be turned over to them in four weeks. The project manager has the team members to complete the project, but is having diff
The correct answer is C. Sharing. The scenario describes an opportunity where the customer pays more for earlier delivery, and the project manager secures necessary materials by paying the vendor more for expedited shipment. This collaborative approach with a third party to capture a positive outcome is known as
Question
The customer has agreed to pay 20% more for the project deliverable if it can be turned over to them in four weeks. The project manager has the team members to complete the project, but is having difficulty procuring enough material from a vendor. The project manager agrees to pay 5% more for the material if complete shipment can be made within a week. This is an example of which of the following risk response strategies?
Options
- ATransferring
- BEnhancing
- CSharing
- DExploiting
How the community answered
(34 responses)- A21% (7)
- B12% (4)
- C62% (21)
- D6% (2)
Why each option
The scenario describes an opportunity where the customer pays more for earlier delivery, and the project manager secures necessary materials by paying the vendor more for expedited shipment. This collaborative approach with a third party to capture a positive outcome is known as sharing an opportunity.
Transferring risk involves shifting the impact and ownership of a negative risk to a third party, typically through contractual agreements like insurance, which is not the case here as it relates to an opportunity.
Sharing is an opportunity response strategy where ownership or responsibility for an opportunity is allocated to a third party who is best able to capture it, often involving a mutual agreement on benefits and costs. By paying the vendor more for expedited materials, the project manager is collaborating with the vendor to realize the opportunity of faster delivery and increased revenue from the customer, distributing the additional cost and potential benefits.
Concept tested: Positive Risk (Opportunity) Response - Sharing
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