Hire Electrician for Safe Electrical Work | CRISC Exam Question

B.

As the risk is transferred to the third party (electrician), hence this type of risk response is transference.

Incorrect Answers: A: 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.

Risk avoidance is applied when the level of risk, even after the applying controls, would be greater than the risk tolerance level of the enterprise.

C: 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.

D: Risk acceptance means that no action is taken relative to a particular risk; loss is accepted if it occurs.

The risk response being followed in this scenario is option B, transference. Transference is a risk response strategy where the risk is shifted to a third party, typically by transferring the responsibility or liability for the risk to them.

In this case, the project team decided to hire an electrician to perform the electrical work. By doing so, the responsibility for the risk associated with performing the electrical work is transferred to the electrician. If something were to go wrong during the installation, the electrician would be responsible for any damages or injuries that occur.

This risk response strategy can be particularly effective when the risk is too high or too complex to be handled by the project team or when the cost of managing the risk is too high. It allows the project team to focus on their core activities and reduces the potential impact of the risk on the project.

Avoidance (option A) would involve eliminating the risk by not installing the electrical machines, which may not be a viable option in this scenario as the electrical machines are necessary for the project.

Mitigation (option C) would involve taking actions to reduce the likelihood or impact of the risk. In this scenario, mitigation could involve providing the electrician with appropriate safety equipment or ensuring that they have the necessary qualifications and experience to perform the work safely.

Acceptance (option D) would involve acknowledging the risk and accepting the potential consequences. This is generally not a desirable risk response strategy unless the risk is low and the potential impact is minimal.