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PMI-RMP · Question #6

PMI-RMP Question #6: Real Exam Question with Answer & Explanation

The correct answer is A: This is mitigation because the response reduces the probability.. See the full explanation below for the reasoning.

Risk Strategy and Planning

Question

You are the project manager of the YHG project for your company. Within the project, you and the project team have identified a risk event that could have a financial impact on the project of $450,000. This risk event has a 70 percent chance of occurring in the project. The project identifies a solution that will reduce the probability of the risk event to ten percent, but it will cost $260,000 to implement. Management agrees with the solution and asks that you include the risk response in the project plan. What risk response is this?

Options

  • AThis is mitigation because the response reduces the probability.
  • BThis is not a risk response, but a change request.
  • CThis is transference because of the $260,000 cost of the solution.
  • DThis is avoidance because the risk response caused the project plan to be changed.

Topics

#Risk Response Strategies#Mitigation#Threat Response#Probability Reduction

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