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PMI-RMP · Question #412
PMI-RMP Question #412: Real Exam Question with Answer & Explanation
The correct answer is B: Purchase an insurance policy covering up to US$85,000 in losses, at a cost of US$5,000, in the. See the full explanation below for the reasoning.
Perform Targeted Risk Analysis
Question
A race director is planning a marathon with US$80,000 in upfront costs that will be offset by race fees. The remainder of the funds will be donated to a national charity. State law mandates that all money paid by the participants must be refunded if the race is cancelled for any reason. Which of the following is the best example of a risk mitigation response?
Options
- ALet the runners know the race will be cancelled only in the event of an emergency.
- BPurchase an insurance policy covering up to US$85,000 in losses, at a cost of US$5,000, in the
- CInform the charity that they will receive no funds should the race be cancelled.
- DCharge the runners an additional amount to cover the US$80,000.
Topics
#Risk Mitigation#Risk Transference#Risk Response Strategies#Financial Risk
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