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PMI-RMP · Question #258

Tracy is the project manager of the NLT Project for her company. The NLT Project is scheduled to last 14 months and has a budget at completion of $4,555,000. Tracy's organization will receive a bonus

The correct answer is D. Enhance. Crashing the project schedule to increase the probability of capturing an early completion bonus is an enhance response, which raises the likelihood or positive impact of an opportunity.

Risk Process Facilitation

Question

Tracy is the project manager of the NLT Project for her company. The NLT Project is scheduled to last 14 months and has a budget at completion of $4,555,000. Tracy's organization will receive a bonus of $80,000 per day that the project is completed early up to $800,000. Tracy realizes that there are several opportunities within the project to save on time by crashing the project work. Crashing the project is what type of risk response?

Options

  • ATransference
  • BMitigation
  • CExploit
  • DEnhance

How the community answered

(68 responses)
  • A
    15% (10)
  • B
    4% (3)
  • C
    9% (6)
  • D
    72% (49)

Why each option

Crashing the project schedule to increase the probability of capturing an early completion bonus is an enhance response, which raises the likelihood or positive impact of an opportunity.

ATransference

Transference shifts the financial impact of a negative risk to a third party such as an insurer or contractor and is not used for positive risks.

BMitigation

Mitigation reduces the probability or impact of a negative risk (threat) and has no application to an opportunity like an early completion bonus.

CExploit

Exploit ensures an opportunity will definitely occur by eliminating all uncertainty, whereas crashing only increases the probability of early completion without guaranteeing it.

DEnhanceCorrect

Enhance is the opportunity response strategy where the project team takes deliberate action to increase the probability or positive impact of an identified opportunity. Tracy is crashing the schedule to raise the likelihood of finishing early and earning the bonus - she is amplifying the chance the opportunity will materialize, but not guaranteeing it. This distinguishes enhance from exploit, which would eliminate uncertainty entirely and ensure the bonus is captured.

Concept tested: Enhance response strategy for positive risks and opportunities

Topics

#Risk response strategies#Opportunities (Positive Risks)#Enhance strategy#Schedule compression

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