Harry is the project manager of the MMQ Construction Project.
In this project Harry has identified a supplier who can create stained glass windows for 1,000 window units in the construction project.
The supplier is an artist who works by himself, but creates windows for several companies throughout the United States.
Management reviews the proposal to use this supplier and while they agree that the supplier is talented, they do not think the artist can fulfill the 1,000 window units in time for the project's deadline.
Management asked Harry to find a supplier who will guarantee the completion of the windows by the needed date in the schedule.
What risk response has management asked Harry to implement?
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A. B. C. D.A.
Management has asked Harry to find a supplier who can guarantee the completion of the windows by the project deadline. This means that management is not willing to accept the risk of the supplier not being able to fulfill the order in time, and they want to transfer this risk to another party who can guarantee delivery on time.
Transference is a risk response strategy where the risk is shifted to another party who is better able to manage it. In this case, management is asking Harry to find a supplier who can guarantee delivery on time, so the risk of delay is being transferred to the new supplier.
Mitigation is a risk response strategy where steps are taken to reduce the impact or likelihood of a risk occurring. Acceptance is a risk response strategy where the risk is acknowledged but no action is taken to address it. Avoidance is a risk response strategy where the risk is avoided altogether by not taking the action that would cause it.
In summary, management has asked Harry to implement a risk response strategy of risk transference by finding a supplier who can guarantee the completion of the windows by the project deadline.