A part of a project deals with the hardware work.
As a project manager, you have decided to hire a company to deal with all hardware work on the project.
Which type of risk response is this?
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A. B. C. D.D.
The risk response of hiring a company to deal with all hardware work on a project can be categorized as transference. Transference is a risk response strategy that involves shifting the impact of a risk to a third party or an external entity, such as an insurance company, vendor, or contractor.
In this case, the project manager is transferring the risk associated with the hardware work to the company that has been hired to perform this work. The company will be responsible for ensuring that the hardware work is completed successfully and that any issues or risks that arise are addressed appropriately.
This approach to risk management can be an effective way to mitigate risks, especially if the third party has more experience or expertise in dealing with the risk than the organization. However, it is important to note that the responsibility for the risk still ultimately rests with the organization, and the organization must ensure that the third party is capable of addressing the risk effectively.
Avoidance is a risk response strategy that involves eliminating the risk entirely, such as by not undertaking the project. Mitigation is a risk response strategy that involves reducing the likelihood or impact of the risk. Exploit is a risk response strategy that involves taking advantage of the risk to achieve a beneficial outcome. In this case, none of these strategies are being employed.