PMI-RMP · Question #140
David is the project manager of the NKL Project for his organization. He has been asked to create a proposal for a construction project for a client. David realizes that there are several…
The correct answer is D. Sharing. David is proposing a sharing risk response, which is an opportunity strategy that involves partnering with another organization to jointly pursue an opportunity neither could capture alone.
Question
David is the project manager of the NKL Project for his organization. He has been asked to create a proposal for a construction project for a client. David realizes that there are several requirements within the SOW and RFP provided by the client that would eliminate his company from bidding on the construction project. David proposed to management that his organization create a partnership with a competitor so that together they could bid on the construction project and qualify for the customer's requirements. What risk response is David proposing to management?
Options
- AExploiting
- BTeaming agreement
- CTransference
- DSharing
How the community answered
(34 responses)- A6% (2)
- B9% (3)
- C15% (5)
- D71% (24)
Why each option
David is proposing a sharing risk response, which is an opportunity strategy that involves partnering with another organization to jointly pursue an opportunity neither could capture alone.
Exploiting is an opportunity response that seeks to eliminate uncertainty and ensure the opportunity definitely occurs - such as dedicating the best available resources - without involving external partnerships to meet qualifications.
A teaming agreement is the contractual instrument used to implement a sharing strategy - it is the mechanism, not the response strategy itself; sharing is the strategy and the teaming agreement executes it.
Transference shifts risk to a third party for a fee and is associated with negative risks (threats) - it does not describe forming a partnership to jointly pursue and benefit from a positive opportunity.
Risk sharing is a positive risk response strategy in which ownership of an opportunity is allocated to a third party best positioned to realize its benefit. By proposing a partnership with a competitor, David is sharing the opportunity - combining capabilities to jointly qualify for and benefit from the construction project bid, which is the textbook definition of sharing.
Concept tested: Risk sharing as an opportunity response strategy
Source: https://www.pmi.org/pmbok-guide-standards/foundational/pmbok
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