ExpertHard1 markMultiple Choice
PMP · Question 08 · Task 3: Assess and manage risks
A project manager identifies a risk that a critical vendor might go bankrupt. The project team decides to contract with a secondary vendor to be on standby for a retainer fee. Which risk response strategy is this?
A project manager identifies a risk that a critical vendor might go bankrupt. The project team decides to contract with a secondary vendor to be on standby for a retainer fee. Which risk response strategy is this?
Answer options:
A.
Avoid
B.
Mitigate
C.
Transfer
D.
Accept
How to approach this question
Ask: Did we eliminate it (Avoid)? Did we pass it to someone else (Transfer)? Did we reduce prob/impact (Mitigate)? Or did we just wait (Accept)?
Full Answer
B.Mitigate✓ Correct
B
This is mitigation because the action (hiring a standby) reduces the impact of the risk event. It is not transfer because the project still owns the problem of getting the work done.
Common mistakes
Confusing Transfer (insurance/warranties) with Mitigation (reducing impact via redundancy).
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