The project director and project manager have met with the board and determined that the project has depleted the entire contingency reserve and has started eroding the profit margin. The project mana

The correct answer is D. Exploit. The risk manager should choose to exploit opportunities, as this response aims to maximize the positive effects of opportunities, which can help recover the project's contingency reserve and Exploit is a positive risk response strategy that aims to ensure that the opportunity is

Risk Strategy and Planning

Question

The project director and project manager have met with the board and determined that the project has depleted the entire contingency reserve and has started eroding the profit margin. The project manager would like the risk manager to take full advantage of opportunities. Which response should the risk manager take?

Options

AMitigate
BAccept
CTransfer
DExploit

How the community answered

(51 responses)

A
4% (2)
B
6% (3)
C
2% (1)
D
88% (45)

Explanation

The risk manager should choose to exploit opportunities, as this response aims to maximize the positive effects of opportunities, which can help recover the project's contingency reserve and Exploit is a positive risk response strategy that aims to ensure that the opportunity is realized. It involves eliminating the uncertainty associated with a particular upside risk and making it happen. For example, if there is an opportunity to reduce the project cost by using a cheaper supplier, the project manager can exploit it by signing a contract with the supplier and securing the savings. Exploit is the opposite of avoid, which is a negative risk response strategy that seeks to eliminate the threat or protect the project from its impact.

Topics

#Risk response strategies#Opportunity management#Exploit strategy

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