PMI-RMP · Question #114
You work as the project manager for Bluewell Inc. You are working on NGQQ Projectyou're your company. You have completed the risk analysis processes for the risk events. You and the project team…
The correct answer is C. Risk transference. Risk Transference is the strategy that shifts the negative impact of a threat - along with ownership of the response - to a third party. Common mechanisms include insurance policies, performance bonds, warranties, guarantees, and fixed-price contracts. Importantly, transference…
Question
You work as the project manager for Bluewell Inc. You are working on NGQQ Projectyou're your company. You have completed the risk analysis processes for the risk events. You and the project team have created risk responses for most of the identified project risks. Which of the following risk response planning techniques will you use to shift the impact of a threat to a third party, together with the responses?
Options
- ARisk acceptance
- BRisk avoidance
- CRisk transference
- DRisk mitigation
How the community answered
(26 responses)- A8% (2)
- C88% (23)
- D4% (1)
Explanation
Risk Transference is the strategy that shifts the negative impact of a threat - along with ownership of the response - to a third party. Common mechanisms include insurance policies, performance bonds, warranties, guarantees, and fixed-price contracts. Importantly, transference does not eliminate the risk; it transfers the financial or operational consequences to another party. The other strategies differ as follows: Risk Avoidance changes the plan to eliminate the threat entirely; Risk Mitigation reduces the probability or impact of the risk; Risk Acceptance acknowledges the risk and takes no proactive action. Only transference explicitly moves the burden to a third party.
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