You work as the project manager for Bluewell Inc.
You are working on NGQQ Projectyoure your company.
You have completed the risk analysis processes for the risk events.
You and the project team have created risk responses for most of the identified project risks.
Which of the following risk response planning techniques will you use to shift the impact of a threat to a third party, together with the responses?
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A. B. C. D.C.
The risk response planning is a process of determining how to deal with identified risks. There are four primary strategies for risk response planning which are:
A. Risk acceptance - this is the decision to accept the risk and not take any action to respond to it. This approach is generally taken when the potential impact of the risk is deemed to be low, and the cost of mitigating the risk is considered to be too high.
B. Risk avoidance - this is the decision to avoid the risk altogether. This approach is taken when the potential impact of the risk is high, and the cost of mitigating the risk is considered to be lower than the potential impact.
C. Risk transference - this is the decision to shift the impact of the risk to a third party. This approach is generally taken when the potential impact of the risk is high, and the cost of mitigating the risk is considered to be too high.
D. Risk mitigation - this is the decision to take action to reduce the impact or likelihood of the risk occurring. This approach is generally taken when the potential impact of the risk is high, and the cost of mitigating the risk is considered to be lower than the potential impact.
In this scenario, the project manager has identified the risk responses for most of the identified project risks. To shift the impact of a threat to a third party, the project manager should use the risk transference technique. This approach is useful when the potential impact of the risk is high, and the cost of mitigating the risk is considered to be too high.
For example, if the project manager is concerned about the risk of a data breach, they may transfer the risk to a third-party vendor who is responsible for data security. The project manager could negotiate a contract with the vendor that outlines their responsibility for protecting the data and their liability if a breach occurs. This would shift the risk from the project team to the vendor, reducing the potential impact of the risk to the project team.
In summary, the risk response planning technique that the project manager should use to shift the impact of a threat to a third party is risk transference.