Sam is the project manager of a construction project in south Florida.
This area of the United States is prone to hurricanes during certain parts of the year.
As part of the project plan Sam and the project team acknowledge the possibility of hurricanes and the damage the hurricane could have on the project's deliverables, the schedule of the project, and the overall cost of the project.
Once Sam and the project stakeholders acknowledge the risk of the hurricane they go on planning the project as if the risk is not likely to happen.
What type of risk response is Sam using?
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A. B. C. D.C.
The risk response that Sam is using is "passive acceptance."
Risk response is the action taken to address or respond to identified risks to a project. The four common types of risk response are avoidance, mitigation, transfer, and acceptance.
Passive acceptance is a risk response strategy in which the project team does not take any actions to address or mitigate the risk. Instead, they accept the risk and plan to deal with the consequences if it occurs.
In the scenario provided, Sam and the project team acknowledge the possibility of hurricanes and the potential impact on the project. However, they continue to plan the project without taking any measures to mitigate the risk or avoid it altogether.
By using a passive acceptance strategy, Sam and the project team are essentially accepting that the risk of a hurricane exists, but they are not taking any proactive steps to address it. Instead, they plan to deal with the consequences if a hurricane occurs, such as delays in the project schedule, damage to the project deliverables, and increased costs.
It's worth noting that passive acceptance may not always be the best risk response strategy. In situations where the consequences of a risk are severe or could have a significant impact on the project's success, other risk response strategies, such as mitigation or avoidance, may be more appropriate.