You are the project manager of GHT project.
You have identified a risk event on your current project that could save $670,000 in project costs if it occurs.
Your organization is considering hiring a vendor to help establish proper project management techniques in order to assure it realizes these savings.
Which of the following statements is TRUE for this risk event?
Click on the arrows to vote for the correct answer
A. B. C. D.D.
This risk event has the potential to save money on project costs and organization is hiring a vendor to assure that all these saving are being realized.
Hence this risk event involves sharing with a third party to help assure that the opportunity take place.
Incorrect Answers: A: This risk event is not accepted as this event has potential to save money as well as it is shared with a vendor so that all these savings are being realized.
B: The risk event is mitigated when it has negative impacts.
But here it is positive consequences (i.e., saving), therefore it is not mitigated.
C: This risk event can be exploited but as here in this scenario, it is stated that organization is hiring vendor, therefore event is being shared not exploited.
Based on the information provided, the risk event in question is that there is a possibility of saving $670,000 in project costs. The organization is considering hiring a vendor to establish proper project management techniques to ensure that these savings are realized.
Let's analyze each answer option to determine which statement is true:
A. This risk event should be accepted because the rewards outweigh the threat to the project.
This statement implies that the risk event is a threat to the project, but the benefits of realizing the savings outweigh the potential negative impact of the risk event. However, this answer option is not entirely accurate because the risk event is not necessarily a threat to the project. Instead, it is an opportunity to save costs.
B. This risk event should be mitigated to take advantage of the savings.
This statement is the most accurate option among the given choices. The risk event is an opportunity to save project costs, and it should be mitigated by hiring a vendor to establish proper project management techniques to ensure that these savings are realized.
C. This risk event is an opportunity to the project and should be exploited.
This statement is similar to option B and is also accurate. The risk event is an opportunity to save project costs, and it should be exploited by hiring a vendor to establish proper project management techniques to ensure that these savings are realized.
D. This is a risk event that should be shared to take full advantage of the potential savings.
This statement suggests that the risk event should be shared with others to maximize the potential savings. However, it is unclear who the risk event should be shared with, and how sharing it would help realize the savings. Therefore, this answer option is not accurate.
In conclusion, the most accurate statement is that the risk event should be mitigated or exploited to take advantage of the potential savings. Answer options B and C both provide accurate explanations of what should be done.