Tracy is the project manager of the NLT Project for her company. The NLT Project is scheduled to last 14 months and has a budget at completion of $4,555,000. Tracy’s organization will receive a bonus of $80,000 per day that the project is completed early up to $800,000. Tracy realizes that there are several opportunities within the project to save on time by crashing the project work. Crashing the project is what type of risk response?
A.
Exploit
B.
Enhance
C.
Transference
D.
Mitigation
Explanation:
Crashing the project enhances opportunities for the project to finish early. By crashing the project there’s no guarantee that the project will complete early, but the odds of completing early is improved by the addition of labor.
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 option C is incorrect. Transference is a negative risk response that transfers the risk to a third party.
Answer option D is incorrect. Mitigation is a negative risk response that aims to lower the probability and/or impact of the risk event.
Answer option A is incorrect. Exploiting the project risk is a positive risk response but it aims to ensure that the opportunity is realized.
Reference: "Project Management Body of Knowledge (PMBOK Guide), Fourth Edition"