A project depends on a specialised soldering process that the team has never performed, and analysis shows a real chance the in-house attempt will fail and delay the schedule. A certified subcontractor will perform the same work under a fixed-price contract that makes the vendor liable for rework. Which risk response does engaging that subcontractor represent?
- ATransfer, because a fixed-price contract shifts the financial consequence of the threat to a third party better able to bear it. Correct
- BMitigate, because the fixed-price contract reduces the probability that the soldering defect will occur on the project.
- CAvoid, because using a subcontractor removes the soldering scope and the associated threat from the project entirely.
- DAccept, because the team acknowledges the threat and relies on the subcontractor to deal with the outcome if it happens.
Why A is correct: Transfer moves the impact of a threat, together with ownership of the response, to a third party without eliminating the threat. A fixed-price contract with rework liability is a textbook transfer mechanism.
Why B is wrong: Mitigation lowers the probability or impact while the team retains ownership of the threat. Here ownership of the consequence, including rework liability, passes to a third party, so the response is transfer rather than mitigation.
Why C is wrong: Avoidance eliminates the threat, often by removing or changing the scope. The soldering work still happens and the threat still exists; it has simply been moved to a party better able to bear it, which is transfer.
Why D is wrong: Acceptance takes no proactive action to change exposure and is tempting because the team is no longer doing the work. Signing a contract that reassigns liability is a deliberate proactive action, so it is transfer.