A Risk with a High Probability and Medium Consequence to a Project

question 106

Multiple Choice

A risk with a high probability and medium consequence to a project has been identified. In response, the project manager has purchased an insurance plan with the intent to provide additional funds if the risk is realized. There is no risk to the schedule or scope. Which of the following types of risk strategies is this an example of?

• A) Accept risk
• B) Transfer risk
• C) Mitigate risk
• D) Exploit risk
• E) Avoid risk

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Definitions:

Acquisitions

The process by which one company purchases most or all of another company's shares to take control.

Competitors

Businesses or individuals that compete within the same market for customers or resources.

Geographic Boundary

The defined physical demarcation of an area, region, or territory based on natural or artificial borders.

Retail Gasoline

The sale of gasoline to consumers through service stations, reflecting the final step in the distribution of petroleum products.