You work as the project manager for Bluewell Inc. You are working on NGQQ Project for your
company. You have completed the risk analysis processes for the risk events. You and the project
team have created risk responses for most of the identified project risks. Which of the following risk
response planning techniques will you use to shift the impact of a threat to a third party, together
with the responses?
A.
Risk mitigation
B.
Risk acceptance
C.
Risk avoidance
D.
Risk transference
Explanation:
Risk transference is a risk response planning technique that is used to shift the impact of a threat to
a third party, together with the ownership of the response.
Risk response planning is a method of developing options to decrease the amount of threats and
make the most of opportunities. The risk response should be aligned with the consequence of the
risk and cost-effectiveness. This planning documents the processes for managing risk events. It
addresses the owners and their responsibilities, risk identification, results from qualification and
quantification processes, budgets and times for responses, and contingency plans. The various risk
response planning techniques are as follows.
Risk acceptance. It indicates that the project team has decided not to change the project
management plan to deal with a risk, or is unable to identify any other suitable response strategy.
Risk avoidance. It is a technique for a threat, which creates changes to the project management plan
that are meant to either eliminate the risk or to protect the project objectives from this impact.
Risk mitigation. It is a list of specific actions being taken to deal with specific risks associated with
the threats and seeks to reduce the probability of occurrence or impact of risk below an acceptable
threshold.
Risk transference. It is used to shift the impact of a threat to a third party, together with the
ownership of the response.