During the planning of a project, Mike discovers an unexpected opportunity to significantly reduce costs by adopting a new technology that is not yet widely used. He decides to adjust the project plan to incorporate this technology in order to gain the cost benefits.
Which positive risk response strategy is Mike utilizing?
Mike is employing the Exploit risk response strategy. Exploiting a positive risk involves taking proactive steps to ensure that the opportunity is realized and that the organization benefits from it. By adjusting the project plan to adopt the new technology and directly gain cost reductions, Mike is seizing the opportunity.
The Enhance strategy aims to increase the probability or impact of an opportunity but does not guarantee it, whereas Exploit takes definitive actions to ensure the opportunity occurs. Accept means acknowledging the opportunity but not taking any action unless it happens on its own, which is not the case here. Mitigate is a response strategy for negative risks (threats), aiming to reduce their impact or likelihood and is not applicable to positive risks.
Ask Bash
Bash is our AI bot, trained to help you pass your exam. AI Generated Content may display inaccurate information, always double-check anything important.
What does it mean to exploit a risk in project management?
Open an interactive chat with Bash
Can you explain what the other risk response strategies (Enhance, Accept, Mitigate) involve?
Open an interactive chat with Bash
Why is it important to have a positive risk response strategy in project management?