5. Your team has developed a strategy to set aside $1000 in a contingency budget and an extra week in the schedule, in the event a particular risk occurs on the project. What is the best description of this strategy? A. Acceptance B. Escalation C. Mitigation D. Avoidance
Question
- Your team has developed a strategy to set aside $1000 in a contingency budget and an extra week in the schedule, in the event a particular risk occurs on the project. What is the best description of this strategy? A. Acceptance B. Escalation C. Mitigation D. Avoidance
Solution
The best description of this strategy is C. Mitigation. This is because the team is taking steps to lessen the impact of the risk (both financially and time-wise) should it occur. They are not accepting the risk without any plan (A), they are not escalating it or making it someone else's problem (B), and they are not avoiding the risk or trying to make it so it won't happen (D). Instead, they are acknowledging that the risk might happen and are planning accordingly to minimize its impact. This is the definition of risk mitigation.
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