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PMI-RMP · Question #194

You are the project manager of your organization. Your organization will receive a bonus if the project finishes by December 20. Management has communicated this bonus to you and your project team and

The correct answer is A. Crashing can be a type of the enhancing risk response.. This is the Enhance risk response, which is used for positive risks (opportunities). Enhancing involves increasing the probability or impact of an opportunity. Here, the organization has an opportunity to earn a $750,000 bonus, and crashing the project (adding resources at additi

Risk Strategy and Planning

Question

You are the project manager of your organization. Your organization will receive a bonus if the project finishes by December 20. Management has communicated this bonus to you and your project team and has asked you to evaluate the project to see if it is possible to realize the reward. The bonus offered to your organization is $750,000. You have examined the project and believe that you can crash the project for an additional $275,000 and reach the December 20 date. Management is thrilled with your assessment and they approve the crash fee. What risk response is this?

Options

  • ACrashing can be a type of the enhancing risk response.
  • BCrashing can be considered transference because of the $275,000 is actually paid from the bonus, which
  • CCrashing can be a type of the exploit risk response.
  • DCrashing is the addition of labor, not a risk response.

How the community answered

(35 responses)
  • A
    83% (29)
  • B
    9% (3)
  • C
    6% (2)
  • D
    3% (1)

Explanation

This is the Enhance risk response, which is used for positive risks (opportunities). Enhancing involves increasing the probability or impact of an opportunity. Here, the organization has an opportunity to earn a $750,000 bonus, and crashing the project (adding resources at additional cost) is a deliberate action to increase the likelihood of capturing that reward. It is not Exploit (C), which seeks to guarantee the opportunity with certainty (e.g., assigning the best resources so success is certain). Transference (B) and the 'just labor' argument (D) mischaracterize what is happening. The crash is specifically a strategic investment to make a favorable risk event more likely to materialize.

Topics

#Risk Response Strategies#Opportunity Management#Enhance Strategy#Schedule Crashing

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