A teaming agreement is an example of what type of risk response?
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A. B. C. D.D.
Teaming agreements are often coming under sharing risk response, as they involves joint ventures to realize an opportunity that an organization would not be able to seize otherwise.
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.
Incorrect Answers: A: Acceptance is a risk response that is appropriate for positive or negative risk events.
It does not pursue the risk, but documents the event and allows the risk to happen.
Often acceptance is used for low probability and low impact risk events.
B: Risk mitigation attempts to reduce the probability of a risk event and its impacts to an acceptable level.
Risk mitigation can utilize various forms of control carefully integrated together.
C: Transference is a negative risk response where the project manager hires a third party to own the risk event.
A teaming agreement is an example of a risk response that falls under the category of risk sharing.
Risk response is an essential step in the risk management process that helps organizations to identify, assess, and respond to risks. It involves determining what actions to take to mitigate, transfer, accept or share risks.
Risk sharing is a risk response strategy that involves sharing the potential impact of a risk with another party. This strategy is useful when an organization is not able to bear the entire cost or impact of the risk alone. Risk sharing can be achieved through various methods, including insurance, partnerships, and joint ventures.
A teaming agreement is a contract between two or more parties to work together to achieve a specific objective. In a teaming agreement, the parties agree to share resources, expertise, and knowledge to achieve their goals. This arrangement allows each party to contribute their strengths and capabilities towards the success of the project.
By entering into a teaming agreement, the parties involved share the risks associated with the project. The risks are shared because each party is responsible for a portion of the project, and the success or failure of the project depends on the contributions of all parties. Therefore, a teaming agreement is an example of risk sharing because the parties share the potential impact of the risks associated with the project.
In conclusion, a teaming agreement is an example of a risk response that falls under the category of risk sharing. By entering into a teaming agreement, the parties involved share the risks associated with the project.