Your pharmaceutical project is developing a new drug delivery system using a predictive approach. During the design phase, a critical supplier notifies you that a key component's lead time has increased from 8 weeks to 20 weeks due to raw material shortages. This component is needed for three activities on the critical path and two on a near-critical path (total float of 5 days). The project is currently on schedule, and regulatory submission deadlines are contractually fixed. Your team proposes four risk response strategies. Which response best addresses this threat while maintaining predictive project controls?

Question

Accepted Answer

The correct answer is C. Mitigation (Option C) is correct because it actively reduces the probability and/or impact of the threat while maintaining schedule control. By placing the order immediately with extended lead time AND qualifying a backup supplier, you create redundancy and optionality. This is particularly appropriate for predictive projects where baseline protection is critical and regulatory deadlines are fixed. Option B incorrectly uses 'exploit' (for opportunities, not threats) and 'splitting procurement' creates coordination risks without addressing the underlying shortage. Option A (acceptance) is inappropriate when the impact threatens a fixed contractual deadline—passive acceptance would be negligent given the criticality. Option D (transfer) doesn't solve the schedule problem; insurance compensates financially but won't meet the regulatory deadline, and penalty clauses don't guarantee component availability.

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