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PK0-005 · Question #145

A critical piece of equipment that is needed for the installation of a point-of-sale solution is delayed from the manufacturer. The delay will cause the project to be significantly behind schedule. Th

The correct answer is B. Transfer. The project manager addressed a critical equipment delay by purchasing the item from another vendor at a higher cost, which is an example of a risk transfer strategy.

Project Management Concepts

Question

A critical piece of equipment that is needed for the installation of a point-of-sale solution is delayed from the manufacturer. The delay will cause the project to be significantly behind schedule. The project manager decides to buy the item at a higher cost from another vendor who can supply it immediately. Which of the following risk management approaches has the project manager taken?

Options

  • AMitigate
  • BTransfer
  • CAccept
  • DShare

How the community answered

(18 responses)
  • A
    11% (2)
  • B
    83% (15)
  • D
    6% (1)

Why each option

The project manager addressed a critical equipment delay by purchasing the item from another vendor at a higher cost, which is an example of a risk transfer strategy.

AMitigate

Mitigate involves reducing the probability or impact of a negative risk, not shifting it to another party.

BTransferCorrect

Transfer is a risk response strategy where the project manager shifts the impact or ownership of a negative risk to a third party, often for a fee. In this case, paying another vendor more transfers the risk of delay and its consequences to that vendor.

CAccept

Accept means acknowledging the risk and not taking any proactive action to change its probability or impact.

DShare

Share is a strategy for positive risks (opportunities) where responsibility is shared with a third party to maximize the chance of occurrence, not for managing negative risks by shifting responsibility.

Concept tested: Risk response strategies - Transfer

Source: https://www.pmi.org/pmbok-guide-standards/foundational/pmbok

Topics

#Risk Management#Risk Response Strategies#Project Management

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