In a large mobile network deployment project, there is delay risk due to insufficient staffing. The risk manager is considering executing a response plan, which involves allowing staff members to…

Question

Options

• ADocument the concern over the potential excessive additional cost.
• BManage the potential excessive additional cost as a new risk.
• CEnsure the project sponsor has the risk appetite for the residual risk created by allowing overtime.
• DPrepare a detailed response plan for the residual risk with a clear owner and time line to ensure

• A
  11% (5)
• B
  4% (2)
• C
  83% (39)
• D
  2% (1)

Explanation

When a risk response creates a new (residual) risk, the risk manager must ensure the appropriate authority - in this case the project sponsor - is aware of and accepts the residual risk before the response is executed. The sponsor holds organizational authority over the project's risk appetite and budget; only they can sanction accepting the cost exposure that overtime may create. Simply documenting the concern (A) or preparing a detailed residual risk response plan (D) without sponsor buy-in skips the critical approval step. Treating the cost overrun as a separate new risk (B) is premature until the sponsor's acceptance of the residual risk is confirmed.

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