plan risk response - fall back option

Submitted by vijayavadrevu on Wed, 05/29/2013 - 15:54

 During Plan Risk Responses process, you realize that there is a critical risk which may have a high impact on the project completion. So, you create a fallback plan which could include any of the following conditions EXCEPT:

1.    Subcontracting the project to an outside vendor


2.    

Developing fallback options


3.    

Allocating contingency reserves


4.    

Reviewing risks driven by strategies

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PMP / CAPM exam Question bank
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DonJuanin

Wed, 05/29/2013 - 17:24

2

all others are option for risk management. Only 2, doesnt make sense since "You create a fallback plan"

Jgrind07

Wed, 05/29/2013 - 17:37

4

vijayavadrevu

Wed, 05/29/2013 - 17:43

 The answer is given as option 1 with the explanation

 

"Subcontracting the project to an outside vendor is a risk transference technique. It simply transfers the responsibility of managing the risk to the other party but does not eliminate the risk. So, we should not subcontract a critical risk unless it is explicitly mentioned that the seller has expertise in handling such risks

A fallback plan can be developed for implementation if the selected strategy is not fully effective or if an accepted risk occurs. Developing further fallback options, allocating contingency reserves, etc should be contained in the fallback plan"

Iam getting confused with fallback plan, workaround and contingency reserve concepts

 

can some one explain?

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cnppmp

Wed, 05/29/2013 - 18:13

I'm just trying to underdstand , do we really subcontract a 'project' as part of the fallback plan? it could  be a particular risk we try to address in such event project is outsourced?

So In that case I would go for option 1...

Regards

CN Patil