Ben is the project manager of the CMH Project for his organization. He has identified a risk that
has a low probability of happening, but the impact of the risk event could save the project and the
organization with a significant amount of capital. Ben assigns Laura to the risk event and instructs
her to research the time, cost, and method to improve the probability of the positive risk event. Ben
then communicates the risk event and response to management. What risk response has been
used here?
A.
Transference
B.
Enhance
C.
Exploit
D.
Sharing
Explanation:
Enhance is a risk response to improve the conditions to ensure the risk event occurs. Risk
enhancement raises the probability of an opportunity to take place by focusing on the trigger
conditions of the opportunity and optimizing the chances. Identifying and maximizing input drivers
of these positive-impact risks may raise the probability of their occurrence.
Answer A is incorrect. Transference is a strategy to mitigate negative risks or threats. In this
strategy, consequences and the ownership of a risk is transferred to a third party. This strategy
does not eliminate the risk but transfers responsibility of managing the risk to another party.
Insurance is an example of transference.
Answer C is incorrect. Exploit response is one of the strategies to negate risks or threats that
appear in a project. This strategy may be selected for risks with positive impacts where the
organization wishes to ensure that the opportunity is realized. Exploiting a risk event provides
opportunities for positive impact on a project. Assigning more talented resources to the project to
reduce the time to completion is an example of exploit response.
Answer D is incorrect. Sharing happens through partnerships, joint ventures, and teaming
agreements. Sharing response is where two or more entities share a positive risk. Teaming
agreements are good example of sharing the reward that comes from the risk of the opportunity.