Sam is the project manager of a construction project in south Florida. This area of the United States is prone to hurricanes during certain parts of the year. As part of the project plan Sam and the project team acknowledge the possibility of hurricanes and the damage the hurricane could have on the project’s deliverables, the schedule of the project, and the overall cost of the project. Once Sam and the project stakeholders acknowledge the risk of the hurricane they go on planning the project as if the risk is not likely to happen. What type of risk response is Sam using?
A.
Passive acceptance
B.
Avoidance
C.
Mitigation
D.
Active acceptance
Explanation:
This is an example of the passive acceptance risk response. Passive acceptance requires no action except documenting the risk strategy. The project team will deal with the risk of the hurricane when, and if, it occurs.
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.
Acceptance is the only response for both threats and opportunities.
Answer option C is incorrect. Mitigation involves the steps to lower the probability and/or impact of the risk event. It’s unlikely that Sam or the project team can lower the probability and/or impact of a hurricane.
Answer option D is incorrect. Active acceptance establishes a contingency reserve. usually include time and a budget for the risk response when, and if, the event occurs.
Answer option B is incorrect. Avoidance changes the project plan to remove the risk altogether from the project.
Reference: "Project Management Body of Knowledge (PMBOK Guide), Fourth Edition"