Gary has identified a project risk that could injure project team members. He does not want to accept any risk where someone could become injured on this project so he hires a professional vendor to…

The correct answer is B. Transference. Hiring a professional vendor to complete risky work and assume the associated danger is Transference. Transference shifts the negative risk impact and ownership to a third party (the vendor). It does not eliminate the risk-the risk still exists, but now it is the vendor's…

Risk Strategy and Planning

Question

Gary has identified a project risk that could injure project team members. He does not want to accept any risk where someone could become injured on this project so he hires a professional vendor to complete this portion of the project work. This workaround to the risk event is known as what type of risk response?

Options

AAcceptance
BTransference
CMitigation
DAvoidance

How the community answered

(33 responses)

A
12% (4)
B
79% (26)
C
3% (1)
D
6% (2)

Explanation

Hiring a professional vendor to complete risky work and assume the associated danger is Transference. Transference shifts the negative risk impact and ownership to a third party (the vendor). It does not eliminate the risk-the risk still exists, but now it is the vendor's responsibility. Acceptance (A) means doing nothing proactive. Mitigation (C) reduces probability or impact. Avoidance (D) eliminates the risk by changing the project plan entirely.

Topics

#Risk Response Planning#Risk Transference#Risk Management Strategies

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