A project manager buys an extended warranty for a set of servers. Which of the following risk management strategies is the manager using?

The correct answer is A. Transfer. Risk transfer shifts the financial or operational consequence of a risk to a third party, typically through contracts, insurance, or warranties. By purchasing an extended warranty, the PM moves the cost and responsibility of server failure from the project to the warranty…

Project Management Concepts

Question

Options

ATransfer
BAvoid
CAccept
DMitigate

How the community answered

(25 responses)

A
92% (23)
B
4% (1)
D
4% (1)

Explanation

Risk transfer shifts the financial or operational consequence of a risk to a third party, typically through contracts, insurance, or warranties. By purchasing an extended warranty, the PM moves the cost and responsibility of server failure from the project to the warranty provider. Avoid (B) means eliminating the risk entirely (e.g., not using those servers). Accept (C) means acknowledging the risk and doing nothing proactively. Mitigate (D) means taking steps to reduce the probability or impact of the risk. A warranty does not reduce the chance of failure-it just makes someone else responsible for the cost.

Topics

#Risk Management#Risk Transfer#Project Risk Strategies

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