You are the project manager for your organization. You have determined that an activity is too dangerous to complete internally so you hire licensed contractor to complete the work. The contractor, however, may not complete the assigned work on time which could cause delays in subsequent work beginning. This is an example of what type of risk event?

A.
Internal

B.
Secondary risk

C.
Transference

D.
Pure risk

Explanation:

A secondary risk is created as a result of a risk response. The first risk of the dangerous work is addressed through transference, but the response creates the possibility of delays within the project. A secondary risk is a risk that arises as a straight consequence of implementing a risk response. The secondary risk is an outcome of dealing with the original risk. Secondary risks are not as rigorous or important as primary risks, but can turn out to be so if not estimated and planned properly. Answer option A is incorrect. Transference is the type of response used to hire the electrician, but it is not a risk type.
Answer option B is incorrect. The dangerous work is an internal risk, but the risk associated and controlled by the vendor is an external risk event.
Answer option C is incorrect. The dangerous work in the project could be a pure risk, as pure risks do not offer any upsides. There is not enough information given to determine if the risk is a pure risk or not. Reference: "Project Management Body of Knowledge (PMBOK Guide), Fourth Edition"