A project in development has excessive power requirements. In response, the company is going to use solar and wind power. Which of the following risk strategies is being utilized?

The correct answer is C. Mitigating. Risk mitigation involves taking actions to reduce the impact or likelihood of a negative risk event. The project has a risk: excessive power requirements that could disrupt or halt operations. By switching to solar and wind energy sources, the company is reducing its exposure…

Project management concepts

Question

Options

AExploiting
BAccepting
CMitigating
DTransferring

How the community answered

(34 responses)

A
3% (1)
C
94% (32)
D
3% (1)

Explanation

Risk mitigation involves taking actions to reduce the impact or likelihood of a negative risk event. The project has a risk: excessive power requirements that could disrupt or halt operations. By switching to solar and wind energy sources, the company is reducing its exposure to that risk - lowering dependence on traditional power infrastructure and buffering against power shortfalls. This is not exploiting (which applies to positive risks/opportunities), not accepting (no action taken), and not transferring (not shifting the risk to a third party like an insurer).

Topics

#risk mitigation#risk strategies#environmental constraints

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