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You work as the project manager for Bluewell Inc. You are working on NGQQ Project for your company. You have completed the risk analysis processes for the risk events. You and the project team have created risk responses for most of the identified project risks. Which of the following risk response planning techniques will you use to shift the impact of a threat to a third party, together with the responses?
Risk transference is a risk response planning technique that is used to shift the impact of a threat to a third party, together with the ownership of the response.
Risk response planning is a method of developing options to decrease the amount of threats and make the most of opportunities. The risk response should be aligned with the consequence of the risk and cost-effectiveness. This planning documents the processes for managing risk events. It addresses the owners and their responsibilities, risk identification, results from qualification and quantification processes, budgets and times for responses, and contingency plans. The various risk response planning techniques are as follows.
Risk acceptance. It indicates that the project team has decided not to change the project management plan to deal with a risk, or is unable to identify any other suitable response strategy.
Risk avoidance. It is a technique for a threat, which creates changes to the project management plan that are meant to either eliminate the risk or to protect the project objectives from this impact.
Risk mitigation. It is a list of specific actions being taken to deal with specific risks associated with the threats and seeks to reduce the probability of occurrence or impact of risk below an acceptable threshold.
Risk transference. It is used to shift the impact of a threat to a third party, together with the ownership of the response.