PMI-RMP · Question #6
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
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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.
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