PMI-RMP · Question #122
Eric is the project manager of the MTC project for his company. In this project a vendor has offered Eric a sizeable discount on all hardware if his order total for the project is more than $125,000.
The correct answer is A. Sharing. Eric's action of combining purchasing power with other project managers to reach a vendor discount threshold is a classic example of the sharing positive risk response strategy.
Question
Eric is the project manager of the MTC project for his company. In this project a vendor has offered Eric a sizeable discount on all hardware if his order total for the project is more than $125,000. Right now, Eric is likely to spend $118,000 with vendor. If Eric spends $7,000 his cost savings for the project will be $12,500, but he cannot purchase hardware if he cannot implement the hardware immediately due to organizational policies. Eric consults with Amy and Allen, other project managers in the organization, and asks if she needs any hardware for their projects. Both Amy and Allen need hardware and they agree to purchase the hardware through Eric's relationship with the vendor. What positive risk response has happened in this instance?
Options
- ASharing
- BExploiting
- CTransference
- DEnhancing
How the community answered
(31 responses)- A74% (23)
- B3% (1)
- C6% (2)
- D16% (5)
Why each option
Eric's action of combining purchasing power with other project managers to reach a vendor discount threshold is a classic example of the sharing positive risk response strategy.
Sharing involves allocating ownership of an opportunity to a third party who can best capture it - Eric brings in Amy and Allen to collectively reach the $125,000 threshold, sharing the vendor relationship and distributing the resulting $12,500 cost savings benefit across multiple projects.
Exploiting means taking action to ensure the opportunity definitely occurs for the single project, such as guaranteeing the full $125,000 spend internally, not by combining volumes with other project managers.
Transference is a negative risk response that shifts the impact of a threat to a third party through insurance or contracts, and does not apply to positive risk opportunities.
Enhancing means increasing the probability or impact of a positive risk event, such as adding resources to make an opportunity more likely, rather than collaborating with peers to collectively qualify for a discount.
Concept tested: Positive risk response strategy - Sharing
Source: https://www.pmi.org/pmbok-guide-standards/foundational/pmbok
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