You are the project manager of HFD project.
You have identified several project risks.
You have adopted alternatives to deal with these risks which do not attempt to reduce the probability of a risk event or its impacts.
Which of the following response have you implemented?
Click on the arrows to vote for the correct answer
A. B. C. D.D.
Contingent response strategy, also known as contingency planning, involves adopting alternatives to deal with the risks in case of their occurrence.
Unlike the mitigation planning in which mitigation looks to reduce the probability of the risk and its impact, contingency planning doesn't necessarily attempt to reduce the probability of a risk event or its impacts.
Contingency comes into action when the risk event actually occurs.
Incorrect Answers: A: Risk acceptance means that no action is taken relative to a particular risk; loss is accepted if it occurs.
If an enterprise adopts a risk acceptance, it should carefully consider who can accept the risk.
Risk should be accepted only by senior management in relationship with senior management and the board.
There are two alternatives to the acceptance strategy, passive and active.
-> Passive acceptance means that enterprise has made no plan to avoid or mitigate the risk but willing to accept the consequences of the risk.
-> Active acceptance is the second strategy and might include developing contingency plans and reserves to deal with risks.
B: Risk mitigation attempts to reduce the probability of a risk event and its impacts to an acceptable level.
Risk mitigation can utilize various forms of control carefully integrated together.
The main control types are: -> Managerial(e.g.,policies) -> Technical (e.g., tools such as firewalls and intrusion detection systems) -> Operational (e.g., procedures, separation of duties) -> Preparedness activities C: Risk avoidance means to evade risk altogether, eliminate the cause of the risk event, or change the project plan to protect the project objectives from the risk event.
Based on the information provided, the project manager of HFD project has identified several project risks and has adopted alternatives to deal with them which do not attempt to reduce the probability of a risk event or its impacts. In this scenario, the response implemented is likely to be "Acceptance."
Risk acceptance is a risk response strategy where the organization acknowledges that a particular risk event could occur, and the potential impact is recognized, but no action is taken to address it actively. This approach is typically taken when the costs or effort required to address the risk are higher than the expected loss associated with the risk event.
Risk acceptance can be an appropriate response when the risk is low, the cost of mitigation is high, and the potential impact is acceptable. This approach is commonly used in situations where the risk can be absorbed or tolerated, or where it is not feasible to mitigate the risk due to budget constraints or other limitations.
On the other hand, mitigation aims to reduce the probability or impact of a risk event, avoidance aims to eliminate the risk altogether, and contingent response plans are put in place to address the risk if it occurs. These approaches are all aimed at reducing the risk, which is not the case in the scenario provided.
Therefore, based on the information provided, the response implemented by the project manager is most likely risk acceptance.