What type of risk response has David adopted?

David is the project manager of the HRC Project. He has identified a risk in the project, which could cause the delay in the project. David does not want this risk event to happen so he takes few actions to ensure that the risk event will not happen. These extra steps, however, cost the project an additional $10,000.

What type of risk response has David adopted?
A . Avoidance
B . Mitigation
C . Acceptance
D . Transfer

View Answer

Answer: B

Explanation:

As David is taking some operational controls to reduce the likelihood and impact of the risk, hence he is adopting risk mitigation. Risk mitigation means that actions are taken to reduce the likelihood and/or impact of risk.

Incorrect Answers:

A: Risk avoidance means that activities or conditions that give rise to risk are discontinued. But here, no such actions are taken, therefore risk in not avoided.

C: Risk acceptance means that no action is taken relative to a particular risk; loss is accepted in case it occurs. As David has taken some actions in case to defend, therefore he is not accepting risk.

D: David has not hired a vendor to manage the risk for his project; therefore he is not transferring the risk.