PMI-RMP · Question #90
Adrian is the project manager of the NHP Project. In her project there are several work packages that deal with electrical wiring. Rather than to manage the risk internally she has decided to hire a…
The correct answer is D. Transference. Transference is the risk response strategy where the financial or operational impact of a risk is shifted to a third party - in this case, a licensed electrical contractor. The risk still exists, but it is now the responsibility of the vendor rather than the project team…
Question
Adrian is the project manager of the NHP Project. In her project there are several work packages that deal with electrical wiring. Rather than to manage the risk internally she has decided to hire a vendor to complete all work packages that deal with the electrical wiring. By removing the risk internally to a licensed electrician Adrian feels more comfortable with project team being safe. What type of risk response has Adrian used in this example?
Options
- AAvoidance
- BMitigation
- CAcceptance
- DTransference
How the community answered
(24 responses)- A8% (2)
- B4% (1)
- C13% (3)
- D75% (18)
Explanation
Transference is the risk response strategy where the financial or operational impact of a risk is shifted to a third party - in this case, a licensed electrical contractor. The risk still exists, but it is now the responsibility of the vendor rather than the project team. Avoidance (A) would mean eliminating the risk entirely by changing the project plan. Mitigation (B) would mean reducing the probability or impact of the risk while keeping it internal. Acceptance (C) would mean acknowledging the risk without taking action. Since Adrian is shifting the risk to an outside party who takes on the liability and responsibility, this is clearly transference.
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