Program Management Professional (PgMP) — Question 259

You are the program manager for your organization. Management is considering a new program but they are worried about the program risks that may affect the program success. You know that there are three positive risks responses and three negative risk responses that each risk can have. Management asks you which risk response would be most appropriate for a large risk event if they wanted to hire a third-party to own the risk event for the program. What risk event is most appropriate?

Answer options

• A. Transference
• B. Mitigation
• C. Avoidance
• D. Sharing

Correct answer: A

Explanation

Transference is the correct answer because it involves shifting the responsibility of managing a risk to a third party, which aligns with the management's desire to hire an external entity. Mitigation focuses on reducing the impact of the risk, Avoidance seeks to eliminate the risk entirely, and Sharing involves distributing the risk among multiple parties, which does not fit the requirement to hire a third party.