You are the project manager for GHY Project and are working to create a risk response for a negative risk.
You and the project team have identified the risk that the project may not complete on time, as required by the management, due to the creation of the user guide for the software you're creating.
You have elected to hire an external writer in order to satisfy the requirements and to alleviate the risk event.
What type of risk response have you elected to use in this instance?
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A. B. C. D.A.
This is an example of transference as you have transferred the risk to a third party.
Transference almost always is done with a negative risk event and it usually requires a contractual relationship.
The risk response that the project manager has elected to use in this instance is A. Transference.
Risk transference is a risk response strategy in which the risk is transferred to a third party, who is better equipped to manage the risk. In this case, the project team has identified the risk that the project may not complete on time due to the creation of the user guide for the software. The project manager has decided to hire an external writer to create the user guide, thus transferring the risk of not completing the project on time to the external writer.
By using risk transference, the project manager is essentially shifting the responsibility of managing the risk to someone else. The external writer is now responsible for delivering the user guide on time, and if they fail to do so, the project manager can hold them accountable for the delay.
It is important to note that risk transference does not eliminate the risk entirely, but rather, it transfers the risk to another party who is better equipped to manage it. Additionally, the project manager should ensure that the external writer is qualified and capable of delivering the user guide on time and to the required quality standards.
Overall, the risk response of transference is appropriate in this scenario as it addresses the risk of not completing the project on time by transferring the responsibility of creating the user guide to a third party.