Question

The Crosswind Network Studio has recently been awarded a large contract to create a new children’s television show. This will require the company to move into a new office complete with production facilities that are 300% larger than the current facilities. The schedule is tight for this new project and delay is not an option. The new office is already two months behind schedule. The company is trying to use an incentive fee to motivate the contractor to complete the work as quickly as possible, even if it results in a smaller delay. This is an example of what type of risk response?
a. Accept
b. Mitigate
c. Avoid
d. Transfer

Answer 1

Answer: avoid risk response                                        

 

Explanation: Risk avoidance is indeed a risk management technique through which the management team works to resolve the danger or secure the project against its effects.

It usually calls for adjustments to the project management policy, such as adjustments in applicability or layout or even in the action plan. By improved communication or obtaining abilities, risk recognized at such a preliminary stage can be prevented.

Introduced in important uncertainties that have a significant effect on the plan's feasibility. Project managers typically use this as a high-risk first response technique.