Question on Risk Response Strategy

Hi Team,


Your team has identified a risk with some of the chemicals you are using on your highway construction project. It is really difficult to mix them just right and, based on past projects, you’ve figured out that there’s a high probability that about 14% of the chemical supply will be lost in mixing problems. You decide to buy an extra 15% of the chemicals up front so that you will be prepared for those losses and your project won’t be delayed. Which response strategy are you using?
A. Avoid
B. Accept
C. Mitigate
D. Transfer


They mentioned answer as C with reason - By buying the extra chemical stock, you are mitigating the risk.


But my understanding is "Mitigating" is an efforts to mitigate a risk. Here team has accepted risk and prepared contigency plan for it. Buying extra chemical stock is not mitigating actual risk of loosing chemical supply.


Please correct me if I am wrong.


Regards,


Jagjit


 

I think I missed point of mitigating impact of risk. Mitigation is about reducing probability or impact of a threat. I think in above example, they have reduced impact of risk.


But still not clear, how is this different from "Accept" strategy.


Regards,


Jagjit

The answer is rightly given as Mitigate.


The extract from PMBOK page 304 says"Mitigate: Take early action to reduce the probability and/or impact of a risk occuring on the project...." and "Accept: This strategy indicates team has decided not to change the Proj. Mngmt Plan to deal with a risk or unable to identify the any other suitable response strategy..."


Also Accept has two categories:


Passive Acceptance- where in the team decides how to deal as the risk occur.


Active acceptance- to establish a contingency reserve to handle the risk.


Hope this clarifies the difference.