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PK0-004 · Question #769
PK0-004 Question #769: Real Exam Question with Answer & Explanation
The correct answer is A: Accept. Knowingly proceeding with a decision despite awareness of a potential negative consequence - without acting to prevent, reduce, or transfer it - is the definition of risk acceptance.
Question
A project manager decides to release a product one month later, knowing marketing studies have shown doing so could require increased manufacturing capacity. Which of the following risk strategies is being employed?
Options
- AAccept
- BExploit
- CTransfer
- DMitigate
Explanation
Knowingly proceeding with a decision despite awareness of a potential negative consequence - without acting to prevent, reduce, or transfer it - is the definition of risk acceptance.
Common mistakes.
- B. Exploit is a response strategy reserved for positive risks (opportunities), used to ensure an upside is fully realized - it does not apply to negative risks like increased costs.
- C. Transfer involves shifting the financial or operational burden of a risk to a third party (via insurance, contract, or outsourcing), which is not occurring here.
- D. Mitigate requires taking action to reduce the probability or impact of the risk, but the PM makes no such effort - they simply proceed with full knowledge of the consequence.
Concept tested. Negative risk response strategy - acceptance
Reference. https://www.pmi.org/pmbok-guide-standards/foundational/pmbok
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