Project Management Professional (PMP)® Examination Content OutlineProcessEasy
A project manager is leading a project to develop a new online banking application. During the planning phase, the team identifies a potential risk: the new application might not fully integrate with the legacy core banking system, leading to data synchronization issues. The project manager decides to allocate a portion of the project budget to develop a robust middleware solution specifically designed to facilitate seamless data exchange between the new application and the legacy system. Which risk response strategy is the project manager employing?
- ARisk Acceptance
- BRisk Avoidance
- CRisk Transference
- DRisk Mitigation
Show answer & explanationAnswer & explanation
Correct answer: D. Risk Mitigation
Developing a robust middleware solution to address potential integration issues is a proactive measure taken to reduce the probability or impact of the risk. This directly aligns with the definition of risk mitigation. The project manager is actively working to lessen the severity of the identified risk.
Why the other options are wrong
- A. Risk acceptance means acknowledging the risk and not taking any action, which is not the case here.
- B. Risk avoidance means eliminating the threat entirely, which is not possible by developing middleware.
- C. Risk transference involves shifting the impact and ownership of a risk to a third party.
Risk Mitigation
A risk response strategy where the project team takes actions to reduce the probability or impact of a negative risk event.
- Proactive approach to lessen risk severity.
- Does not eliminate the risk, but makes it more manageable.
- Can involve technical, managerial, or contractual actions.
Memory trick: Mitigate the danger, lessen the pain.