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NEW QUESTION: 1
There are four negative risk responses an organization can elect to use. Your organization is completing a project where some electrical work is deemed too dangerous to be completed internally. You advise that the project manager hire a licensed electrician to complete the dangerous assignment. What type of risk response have you advised in this scenario?
Answer option B is correct.
Transference is a risk response that transfers the risk to a third party, usually for a fee. Transference does not eliminate the risk event, but assigns ownership of the risk to someone else.
Answer option C is incorrect. Mitigation involves actions to reduce or eliminate the probability and/or impact of the risk event.
Answer option A is incorrect. Avoidance involves actions to avoid the risk event, such as changing the project scope to take the risky work out of the project.
Answer option D is incorrect. Acceptance, as its name implies, accepts the risk event and the consequences the risk event may bring. Acceptance is usually for smaller risk events.
Reference: Professional in Human Resources Certification Guide, Sybex, ISBN: 978-0-470-43096-5.
Chapter 5: Human Resource Development. Official PHR and SPHR Certification Guide, HR Certification Institute, ISBN: 978-1-586-44149-4, Section III, The US Body of Knowledge.
Chapter: Risk Management
Objective: Risk Management
NEW QUESTION: 2
A. Option C
B. Option D
C. Option B
D. Option A