Opportunity Risk Response Types | PRINCE2 Re-Registration

Opportunity Risk Response Types

Question

Which risk response type is appropriate to respond to an opportunity?

Answers

Explanations

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A. B. C. D.

C.

Opportunities are events or situations that can have a positive impact on a project's objectives if they occur. Risk response planning involves developing options and actions to enhance opportunities and to reduce or eliminate threats to project objectives.

The appropriate risk response type to respond to an opportunity is "Exploit." Exploit is a risk response strategy that seeks to eliminate the uncertainty associated with a particular opportunity and to ensure that the opportunity is fully realized. The goal of exploiting an opportunity is to ensure that the project benefits as much as possible from the opportunity, such as by optimizing project performance or realizing cost savings.

Other risk response strategies that are used to respond to risks or threats include:

A. Accept - this risk response strategy is used when the project team chooses to accept the risk and its potential impact. This is typically used when the potential impact is low, or the cost of mitigation is higher than the impact of the risk.

B. Fallback - this is a risk response strategy that involves identifying an alternative course of action to be taken if a risk event occurs.

D. Transfer - this risk response strategy involves shifting the impact of the risk to a third party. This may involve purchasing insurance, outsourcing a project task, or entering into a partnership to share the risk.

In conclusion, "Exploit" is the appropriate risk response strategy to respond to an opportunity, whereas "Accept", "Fallback", and "Transfer" are more appropriate to respond to threats or risks.