Question

A key distinction between a risk response and a contingency plan is A. A risk response is established only for moderate risks while contingency plans are established for major risks. B. A risk response is part of the actual implementation plan and action is taken before the risk can materialize, while a contingency plan goes into effect only after the risk has transpired. C. A risk response is only effective when you are able to assess the likelihood of the risk and its impact on the project; all other risks are covered by contingency planning. D. A risk response is created by the project team and the project manager while the project manager and the customer agree on the contingency plan. E. A risk response is action that is the response to a risk once it has happened and the contingency plan is created by the customer if the risk response fails.

Answer 1

Answer:

The correct answer is the option B: A risk response is part of the actual implementation plan and action is taken before the risk can materialize, while a contingency plan goes into effect only after the risk has transpired.

Explanation:

On the one hand, a risk response involves the process of controlling risks that are already known by the people who make the plan in the first place and therefore that this type of concept includes the idea of doing something before the worst happen and therefore to avoid the risks.

On the other hand, a contingency plan involves the process of planning for an unexpected situation that did not happen before and was not established in the original plan, therefore that this type of concept includes the idea of acting over the margin due to the exceptional situation that occurs.

Answer 2

Answer: B. A risk response is part of the actual implementation plan and action is taken before the risk can materialize, while a contingency plan goes into effect only after the risk has transpired

Explanation: While contingency plans describe set of specific intended actions that can be taken if specific opportunities or threats occur, a risk response involves ways of reducing or eliminating threats to a project while enhancing opportunities.

Therefore, a key distinction between a risk response and a contingency plan is that in a risk response, action is taken before risks can materialize and is part of the actual implementation plan while a contingency plan goes into play only after risks are recognized and isn't a part of the initial implementation plan.