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PK0-004 · Question #191

A risk with a high probability and medium consequence to a project has been identified. In response, the project manager has purchased an insurance plan with the intent to provide additional funds…

The correct answer is B. Transfer risk. Transfer: Moving the liability for the risk to a third party by purchasing insurance, performance bonds, and so on.

Project management concepts

Question

A risk with a high probability and medium consequence to a project has been identified. In response, the project manager has purchased an insurance plan with the intent to provide additional funds if the risk is realized. There is no risk to the schedule or scope. Which of the following types of risk strategies is this an example of?

Options

  • AAccept risk
  • BTransfer risk
  • CMitigate risk
  • DExploit risk
  • EAvoid risk

How the community answered

(49 responses)
  • A
    2% (1)
  • B
    88% (43)
  • C
    8% (4)
  • D
    2% (1)

Explanation

Transfer: Moving the liability for the risk to a third party by purchasing insurance, performance bonds, and so on.

Topics

#risk transfer#risk strategies#insurance#risk management

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