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.C.
The risk response that the project manager has elected to use in this instance is C. Transference.
Risk transference is a risk response strategy in which a third party assumes the risk and is responsible for its management. In this case, the project manager has elected to hire an external writer to create the user guide for the software, which will alleviate the risk event of the project not completing on time. The external writer assumes the risk of completing the user guide on time, allowing the project team to focus on other aspects of the project.
Risk avoidance involves eliminating the risk by changing the project plan, while risk sharing involves allocating the risk among the project team or stakeholders. Exploiting is not a valid risk response strategy and does not apply in this situation.
It is important to note that risk transference does not eliminate the risk, but rather transfers the responsibility for managing the risk to a third party. The project manager should ensure that the external writer has the necessary skills and resources to complete the task on time, and should also have a contingency plan in case the external writer is unable to complete the task on time.