Bill is the project manager of the JKH Project.
He and the project team have identified a risk event in the project with a high probability of occurrence and the risk event has a high cost impact on the project.
Bill discusses the risk event with Virginia, the primary project customer, and she decides that the requirements surrounding the risk event should be removed from the project.
The removal of the requirements does affect the project scope, but it can release the project from the high risk exposure.
What risk response has been enacted in this project?
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A. B. C. D.accepting (retaining) the risk might have allowed.
Answer: C is incorrect.
Acceptance is when the stakeholders acknowledge the risk event and they accept that.
This is an example of the avoidance risk response.
Because the project plan has been changed to avoid the risk event, so it is considered the avoidance risk response.
Risk avoidance is a technique used for threats.
It creates changes to the project management plan that are meant to either eliminate the risk completely or to protect the project objectives from its impact.
Risk avoidance removes the risk event entirely either by adding additional steps to avoid the event or reducing the project scope requirements.
It may seem the answer to all possible risks, but avoiding risks also means losing out on the potential gains that the event could happen and could have an impact on the project.
Acceptance is usually used for risk events that have low risk exposure or risk events in which the incorrect.
Transference is when the risk is still within the project, but the ownership and management of the risk event is transferred to a third party - usually for a fee.
The risk response that has been enacted in this project is "Avoidance."
Risk avoidance is a risk response strategy that involves changing the project plan or removing the risk event altogether to eliminate the risk or protect the project objectives from the risk. In this scenario, the project team has identified a risk event with a high probability of occurrence and a high cost impact on the project. The risk event has been evaluated to be significant enough to affect the project's objectives, and the project manager has discussed it with the project customer, Virginia.
Virginia, as the primary project customer, has decided to remove the requirements surrounding the risk event from the project. This means that the project scope has been altered to exclude the requirements and can release the project from the high risk exposure. By eliminating the risk event from the project scope, the project team can focus on the remaining requirements without worrying about the impact of the risk event.
Therefore, the risk response strategy that has been enacted in this project is avoidance, which involves removing the risk event altogether by changing the project plan or scope to protect the project objectives from the risk.