David is the project manager of the NKL Project for his organization. He has been asked to create a proposal for a construction project for a client. David realizes that there are several requirements within the SOW and RFP provided by the client that would eliminate his company from bidding on the construction project. David proposed to management that his organization create a partnership with a competitor so that together they could bid on the construction project and qualify for the customer’s requirements. What risk response is David proposing to management?

A.
Transference

B.
Sharing

C.
Exploiting

D.
Teaming agreement

Explanation:

Sharing is a positive risk response often seen through partnerships and teaming agreements to seize an opportunity.
Sharing response is where two or more entities share a positive risk. Risk sharing deals with sharing of responsibility and accountability with others to facilitate the team with the best chance of seizing the opportunity. Teaming agreements are good example of sharing the reward that comes from the risk of the opportunity.
Answer option D is incorrect. The teaming agreement describes the contractual relationship between the parties involved in the project.
Answer option C is incorrect. Exploiting is a positive risk response to ensure that the opportunity within a project is realized, such as time or cost savings.
Answer option A is incorrect. Transference is a negative risk response to transfer the risks to a third-party. Reference: "Project Management Body of Knowledge (PMBOK Guide), Fourth Edition"