Identifying and Leveraging Positive Risks

B.

Enhance is a risk response to improve the conditions to ensure the risk event occurs.

Risk enhancement raises the probability of an opportunity to take place by focusing on the trigger conditions of the opportunity and optimizing the chances.

Identifying and maximizing input drivers of these positive-impact risks may raise the probability of their occurrence.

Incorrect Answers: A: Transference is a strategy to mitigate negative risks or threats.

In this strategy, consequences and the ownership of a risk is transferred to a third party.

This strategy does not eliminate the risk but transfers responsibility of managing the risk to another party.

Insurance is an example of transference.

C: Exploit response is one of the strategies to negate risks or threats that appear in a project.

This strategy may be selected for risks with positive impacts where the organization wishes to ensure that the opportunity is realized.

Exploiting a risk event provides opportunities for positive impact on a project.

Assigning more talented resources to the project to reduce the time to completion is an example of exploit response.

D: Sharing happens through partnerships, joint ventures, and teaming agreements.

Sharing response is where two or more entities share a positive risk.

Teaming agreements are good example of sharing the reward that comes from the risk of the opportunity.

The risk response used in this scenario is "Exploit."

Exploit is a positive risk response strategy that involves taking advantage of an opportunity that arises from a positive risk event. This strategy is used when the organization wants to increase the probability and/or impact of a positive risk event.

In this scenario, Ben has identified a positive risk event that has a low probability of happening, but if it does occur, it could save the project and the organization a significant amount of capital. Ben decides to exploit this risk event by assigning Laura to research the time, cost, and method to improve the probability of the positive risk event. By doing this, Ben is taking steps to increase the likelihood of the positive risk event occurring and its impact if it does happen.

After assigning Laura to the task, Ben communicates the risk event and response to management. This is an important step in the risk management process as it keeps management informed about the potential positive risk event and the steps being taken to exploit it.

In summary, the Exploit strategy involves taking advantage of positive risk events to increase their probability and/or impact. In this scenario, Ben has assigned Laura to research and take action to increase the likelihood of a positive risk event occurring, and has communicated the risk event and response to management.