Risk Strategies :
A risk in your project has been identified as outside the boundaries of the project and beyond your authority as project manager. Which risk response would be the most suitable in this case?
A. Transfer.
B. Escalate.
C. Mitigate
D. Share.
PMP® Solution 141.
X A. Transfer involves shifting ownership of a threat to a third party to manage the risk and to bear the impact if the threat occurs. Risk transfer often involves payment of a risk premium to the party taking on the threat.
X C. In risk mitigation, action is taken to reduce the probability of occurrence and/or impact of a threat. Early mitigation action is often more effective than trying to repair the damage after the threat has occurred.
X D. Sharing involves transferring ownership of an opportunity to a third party so that it shares some of the benefit if the opportunity occurs. It is important to select the new owner of a shared opportunity carefully so they are best able to capture the opportunity for the benefit of the project.
Escalation is appropriate when the project team or the project sponsor agrees that a threat is outside the scope of the project or that the proposed response would exceed the project manager’s authority. Escalated risks are managed at the program level, portfolio level, or other relevant part of the organization, and not on the project level. The project manager determines who should be notified about the threat and communicates the details to that person or part of the organization. Therefore, right answer is B. [PMBOK 6th edition, Page 442] [Project Risk Management]
Cheers
Option B- Escalate. When things are beyond project manager’s authority, he escalates the issue to the higher level.
B
B