PMP Question of the Week: Plan Risk Responses

pmpweek06

It has been discovered that the Director of Accounts Payable in your company has been redirecting funds from new projects to help an adult son escape financial difficulties. Your executives are very apprehensive because this director has a highly successful track record in financing successful new product rollouts key to the organization’s market survival. Which of the following would best illustrate a transfer strategy during the Plan Risk Responses process?

A. Keep the director with no penalties, because the redirection was not for any personal financial gain.
B. Demote the director.
C. Discharge the director, and outsource new project financing to an accounting firm.
D. Discharge the director, and suspend the new projects.

The correct answer is C.

Outsourcing is a transfer strategy since it, by definition, should involve a contract, and contracts are used to specify liability to another party.

Answer choice A is an accept strategy.

Answer choice B is a mitigate strategy, because there would no longer be enough authority to redirect funds.

Answer choice D is not transfer. It could be considered an avoid in its strongest sense, because in suspending the associated projects, you are temporarily stopping (or avoiding) those projects.

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3 comments

  1. dina mamola Reply

    choices are 1, 2, 3, 4. Correct answer is C? LOL.

    1. Leah Kirby Reply

      Dina, LOL! 1) Thanks for pointing out our inconsistency. B) It’s fixed now. 🙂

  2. dina mamola Reply

    Thank you Leah!