Your team has identified a risk that a key supplier might not deliver critical components on time, which would delay your project by two weeks. After analyzing the risk, you decide to order the components from a backup supplier who can guarantee delivery within your required timeframe, even though this will cost 15% more. What risk response strategy are you implementing?

Question

Accepted Answer

The correct answer is B. Risk mitigation involves taking action to reduce the probability or impact of a risk. By using a backup supplier, you are reducing the impact (from a two-week delay to on-time delivery) at the cost of higher expenses. Option A (avoidance) is a common distractor but would mean eliminating the risk entirely, such as changing the project scope to not require those components at all. Risk transfer (option C) would involve shifting the risk to a third party, like purchasing insurance, while acceptance (option D) means acknowledging the risk without taking proactive action to address it.

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