Question

Which activity relates to the strategy of transferring risk

Answer 1

Answer:

A. Brainstorming with staff

Explanation:

Risk transfer is a risk management strategy that is not used very often, and tends to be more common in projects where there are several parties. Basically, you transfer the impact and risk management to someone else. For example, you have a third party hired to write your software code, you can then transfer the risk of possible errors in the code to the third party. He will be responsible for managing that risk.

Transfers are usually formalized in project contracts. Insurance is another good example. If transportation of equipment is part of your project and the vehicle was involved in an accident, the insurance company will be responsible for providing new equipment to replace any damaged one. The project team recognizes that the accident can happen, but will not be responsible for handling replacement kits, or paying for damages, as it is now the responsibility of the insurance company.

As team consent is essential for risk transfer to be effective within a company, team brainstorming is an activity related to risk transfer. This is because through the group brainstoming to debate solutions to a problem, how to avoid them and who will be responsible for them.

Answer 2

Risk transferring refers to taking risk or risk that may occur from one party and moving it to another. If there was a chance risk may occur, conducing a 'what if' analysis will allow the organization to see what may happen if they do or do not transfer risk to another party.