You are the project manager of a large construction project.
Part of the project involves the wiring of the electricity in the building your project is creating.
You and the project team determine the electrical work is too dangerous to perform yourself so you hire an electrician to perform the work for the project.
This is an example of what type of risk response?
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A. B. C. D.A.
The risk response described in the scenario is an example of risk transference, which is option A. Risk transference involves shifting the responsibility for managing a risk to a third party, such as an insurance company or a contractor. In this case, the project team has decided to hire an electrician to perform the electrical work, effectively transferring the risk of performing this dangerous task to a trained professional.
Risk mitigation, option B, involves taking actions to reduce the likelihood or impact of a risk. For example, the project team might decide to install additional safety features in the electrical system to reduce the risk of electrical fires or shocks.
Risk avoidance, option C, involves taking steps to eliminate the risk altogether. For example, the project team might decide to redesign the building so that it does not require any electrical work at all, or they might decide to abandon the project entirely if the risks are deemed too great.
Risk acceptance, option D, involves acknowledging the risks associated with a project and deciding to proceed with the project anyway. In this case, the project team has not chosen to accept the risk of performing the electrical work themselves, but instead has opted to transfer that risk to a trained professional.
Overall, risk transference can be an effective risk response strategy when dealing with complex or dangerous tasks that require specialized knowledge or expertise. By hiring an electrician, the project team is able to mitigate the risk of injury or damage from the electrical work, while also ensuring that the work is performed correctly and safely.