Rob is the project manager of the IDLK Project for his company.
This project has a budget of $5,600,000 and is expected to last 18 months.
Rob has learned that a new law may affect how the project is allowed to proceed - even though the organization has already invested over $750,000 in the project.
What risk response is the most appropriate for this instance?
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A. B. C. D.D.
In this scenario, Rob, the project manager of the IDLK Project, has learned about a new law that may affect how the project is allowed to proceed, even though the organization has already invested over $750,000 in the project. This implies that there is a risk associated with the project, and the organization needs to take appropriate actions to address this risk.
The most appropriate risk response in this instance would be option D, "Acceptance." This response means that the organization acknowledges the risk but decides not to take any action to address it. The organization may choose this response if the cost of addressing the risk outweighs the potential impact of the risk occurring.
Option A, "Transference," would involve transferring the risk to a third party, such as an insurance company, to reduce the organization's exposure to the risk. However, it may not be feasible in this scenario as the new law may affect the project's ability to proceed, making it difficult to transfer the risk to another party.
Option B, "Mitigation," would involve taking actions to reduce the likelihood or impact of the risk occurring. This response may be appropriate if the cost of mitigation is lower than the potential impact of the risk occurring. However, the scenario does not provide enough information to determine if this response is appropriate.
Option C, "Enhance," would involve taking actions to increase the probability or impact of an opportunity arising. This response is not appropriate in this scenario as it is focused on opportunities rather than risks.
In conclusion, the most appropriate risk response in this instance is option D, "Acceptance," which involves acknowledging the risk but deciding not to take any action to address it.