Rob is the project manager of the IDLK Project for his company. This project has a budget of
$5,600,000 and is expected to last 18 months. Rob has learned that a new law may affect how the
project is allowed to proceed – even though the organization has already invested over $750,000
in the project. What risk response is the most appropriate for this instance?
A.
Transference
B.
Enhance
C.
Mitigation
D.
Acceptance
Explanation:
At this point all that Rob can likely do is accepting the risk event. Because this is an
external risk, there is little that Rob can do other than document the risk and share the new with
management and the project stakeholders. If the law is passed then Rob can choose the most
appropriate way for the project to continue. Acceptance response is a part of Risk Response
planning process. Acceptance response delineates that the project plan will not be changed to
deal with the risk. Management may develop a contingency plan if the risk does occur.
Acceptance response to a risk event is a strategy that can be used for risks that pose either
threats or opportunities. Acceptance response can be of two types: Passive acceptance: It is a
strategy in which no plans are made to try or avoid or mitigate the risk. Active acceptance: Such
responses include developing contingency reserves to deal with risks, in case they occur.
Transference transfers the ownership of the risk event to a third party, usually through a
the probability and/or impact of the positive risk event.