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NEW QUESTION: 1
There are seven risks responses that a project manager can choose from. Which risk response is appropriate for both positive and negative risk events?
A. Transference
B. Acceptance
C. Mitigation
D. Sharing
Answer: B
Explanation:
Only acceptance is appropriate for both positive and negative risk events. Often sharing is used for low probability and low impact risk events regardless of the positive or negative effects the risk event may bring the project. Acceptance response is a part of Risk Response planning process. Acceptance response delineates that the project plan will not be changed to deal with the risk. Management may develop a contingency plan if the risk does occur. Acceptance response to a risk event is a strategy that can be used for risks that pose either threats or opportunities. Acceptance response can be of two types: Passive acceptance: It is a strategy in which no plans are made to try or avoid or mitigate the risk. Active acceptance: Such responses include developing contingency reserves to deal with risks, in case they occur. Acceptance is the only response for both threats and opportunities. Answer C is incorrect. Sharing is a positive risk response that shares an opportunity for all parties involved in the risk event. Answer B is incorrect. Transference is a negative risk event that transfers the risk ownership to a third party, such as vendor, through a contractual relationship. Answer D is incorrect. Mitigation is a negative risk event that seeks to lower the probability and/or impact of a risk event.

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