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PMI-RMP · Question #298

Giving a part of project work to a contractor is an example of:

The correct answer is D. risk deflection. Outsourcing project work to a contractor transfers the risk and its associated responsibility to a third party, which is known as risk deflection or transference.

Risk Strategy and Planning

Question

Giving a part of project work to a contractor is an example of:

Options

  • Arisk assumption
  • Brisk assignment
  • Crisk delegation
  • Drisk deflection
  • Erisk mitigation

How the community answered

(27 responses)
  • C
    4% (1)
  • D
    89% (24)
  • E
    7% (2)

Why each option

Outsourcing project work to a contractor transfers the risk and its associated responsibility to a third party, which is known as risk deflection or transference.

Arisk assumption

Risk assumption (acceptance) means the project team acknowledges the risk and decides not to change the project plan to deal with it, rather than shifting it to another party.

Brisk assignment

Risk assignment is not a standard PMI risk response strategy; the recognized term for shifting risk to an outside party is transference or deflection.

Crisk delegation

Risk delegation is not a recognized PMI risk response strategy; delegating work internally does not transfer risk to an outside party.

Drisk deflectionCorrect

Risk deflection (also called risk transference) shifts the negative impact of a risk and ownership of the response to a third party such as a contractor or insurer. When project work is outsourced to a contractor, the contractor assumes the risk associated with performing that work, effectively deflecting the risk away from the buyer's project team.

Erisk mitigation

Risk mitigation involves reducing the probability or impact of a risk, not transferring it to another party through a contract or outsourcing arrangement.

Concept tested: Risk transference through outsourcing to a contractor

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

Topics

#Risk response planning#Risk transfer#Contracting#Outsourcing

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