Marsha is the project manager of the NHQ Project. There’s a risk that her project team has identified, which could cause the project to be late by more than a month. Marsha does not want this risk event to happen so she devises extra project activities to ensure that the risk event will not happen. The extra steps, however, will cost the project an additional $10,000. What type of risk response is this approach?
A.
Exploiting
B.
Enhancing
C.
Transference
D.
Mitigation
Explanation:
This is an example of risk mitigation. By taking extra steps and spending the extra funds Marsha and her project team are ensuring that the risk event will not happen in her project.
What is mitigation? Hide
Mitigation is a risk response planning technique associated with threats that seeks to reduce the probability of occurrence or impact of a risk to below an acceptable threshold. Risk mitigation involves taking early action to reduce the probability and impact of a risk occurring on the project. Adopting less complex processes, conducting more tests, or choosing a more stable supplier are examples of mitigation actions.Answer option C is incorrect. Marsha has not hired a vendor to manage the risk for her project.
Answer option A is incorrect. Exploiting is when there’s a positive risk the project manager want to take advantage of.
Answer option B is incorrect. Enhancing is when there’s a positive risk and the project manager tries to make the risk event happen.
Reference: Chapter 11. A Guide to the Project Management Body of Knowledge, (PMBOK Guide), Fourth Edition, ISBN:9781933890517, Section 11.5.2.1.
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