Rob is the project manager of the IDLK Project for his company. This project has a budget of $5,600,000 and is expected to last 18 months. Rob has learned that a new law may affect how the project is

A new law is an external risk event that the project team has no ability to prevent, and it cannot practically be transferred to another party or mitigated through internal actions. Acceptance - either passive (acknowledging the risk and accepting consequences) or active (establishing a contingency reserve or plan) - is the correct response when a risk is outside the project team's control. The $750,000 already invested is a sunk cost and does not change the appropriate risk response to a new legal constraint.

Transference shifts risk to a third party such as an insurer or contractor, but a legal or regulatory constraint applies to the organization itself and cannot be transferred away.

Mitigation reduces the probability or impact of a risk, but a potential new law is a binary external event - once enacted it applies fully, leaving little opportunity to reduce its probability through project actions.

Enhance is a risk response for positive risks (opportunities) aimed at increasing their probability or impact; it is not applicable to a legal threat against the project.