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PMI-RMP · Question #221

You are the project manager for your organization. You have determined that an activity is too dangerous to complete internally so you hire licensed contractor to complete the work. The contractor, ho

The correct answer is B. Secondary risk. Hiring a contractor transfers the original dangerous-activity risk, but the new risk of contractor delay is a secondary risk - one that arises directly from implementing a risk response.

Risk Monitoring and Reporting

Question

You are the project manager for your organization. You have determined that an activity is too dangerous to complete internally so you hire licensed contractor to complete the work. The contractor, however, may not complete the assigned work on time which could cause delays in subsequent work beginning. This is an example of what type of risk event?

Options

  • AInternal
  • BSecondary risk
  • CPure risk
  • DTransference

How the community answered

(47 responses)
  • A
    4% (2)
  • B
    87% (41)
  • C
    2% (1)
  • D
    6% (3)

Why each option

Hiring a contractor transfers the original dangerous-activity risk, but the new risk of contractor delay is a secondary risk - one that arises directly from implementing a risk response.

AInternal

Internal risks originate from inside the performing organization; this new risk was introduced by an external contractor engaged to handle the original risk.

BSecondary riskCorrect

A secondary risk is defined as a risk that emerges as a direct consequence of implementing a risk response strategy. By transferring the dangerous work to a contractor (transference), a new risk was created - the contractor may not finish on time - which is the textbook definition of a secondary risk in PMI methodology.

CPure risk

Pure risk refers to a scenario that can only produce a loss with no chance of gain, which does not specifically describe the type of risk created by a response action.

DTransference

Transference is the risk response strategy used (shifting the dangerous work to the contractor), not the classification of the new delay risk that resulted from it.

Concept tested: Secondary risk created by risk response action

Source: https://www.pmi.org/pmbok-guide-standards/foundational/pmbok

Topics

#Secondary risk#Risk response strategies#Risk transference#Risk identification

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