Which of the following risk responses include feedback and guidance from well-qualified risk
officials and those internal to the project?

A.
Contingent response strategy

B.
Risk Acceptance

C.
Expert judgment

D.
Risk transfer

Explanation:

Expert judgment is utilized in developing risk responses, including feedback and guidance from
risk management experts and those internal to the project qualified to provide assistance in this
process. Expert judgment is a technique based on a set of criteria that has been acquired in a
specific knowledge area or product area. It is obtained when the project manager or project team
requires specialized knowledge that they do not possess. Expert judgment involves people most
familiar with the work of creating estimates. Preferably, the project team member who will be doing
the task should complete the estimates. Expert judgment is applied when performing
administrative closure activities, and experts should ensure the project or phase closure is
performed to the appropriate standards.
Answer B is incorrect. Risk acceptance means that no action is taken relative to a particular risk;
loss is accepted if it occurs. If an enterprise adopts a risk acceptance, it should carefully consider
who can accept the risk. Risk should be accepted only by senior management in relationship with
senior management and the board. There are two alternatives to the acceptance strategy, passive
and active.
Passive acceptance means that enterprise has made no plan to avoid or mitigate the risk but
willing to accept the consequences of the risk.
Active acceptance is the second strategy and might include developing contingency plans and
reserves to deal with risks.
Answer D is incorrect. Risk transfer means that impact of risk is reduced by transferring or
otherwise sharing a portion of the risk with an external organization or another internal entity.
Transfer of risk can occur in many forms but is most effective when dealing with financial risks.
Insurance is one form of risk transfer.
Answer A is incorrect. Contingent response strategy, also known as contingency planning,
involves adopting alternatives to deal with
the risks in case of their occurrence. Unlike the mitigation planning in which mitigation looks to
reduce the probability of the risk and its impact, contingency planning doesn’t necessarily attempt
to reduce the probability of a risk event or its impacts. Contingency comes into action when the
risk event actually occurs.