PMI CAPM (Certified Associate in Project Management) Examination Content OutlinePredictive, Plan-Based MethodologiesMedium
A project manager is overseeing a construction project. The team has identified that the concrete supplier has a history of late deliveries, which could delay the project's critical path. To mitigate this, the project manager decides to order concrete from two different suppliers, even though it slightly increases the total cost. Which risk response strategy is being implemented?
- ATransfer
- BExploit
- CAccept
- DMitigate
Show answer & explanationAnswer & explanation
Correct answer: D. Mitigate
Ordering from two suppliers to reduce the probability or impact of a late delivery from one supplier is an action taken to reduce the severity of a threat. This aligns with the 'Mitigate' risk response strategy.
Why the other options are wrong
- A. Transfer involves shifting the impact or ownership of a risk to a third party.
- B. Exploit is a strategy for opportunities, aiming to ensure the opportunity occurs.
- C. Accept involves acknowledging the risk without taking proactive action.
Mitigate Risk
A risk response strategy where actions are taken to reduce the probability of a threat occurring or to reduce its impact if it does occur.
- Involves proactive steps to lessen risk exposure.
- Does not eliminate the risk entirely, but reduces its severity.
- Examples include redundant systems, additional testing, or choosing more reliable suppliers.
Memory trick: ARTEM: Avoid, Reduce, Transfer, Exploit, Mitigate.