Risk Response Planning

Correct Answer: Transfer

The risk response strategy used here is 'Transfer'. This strategy involves moving the risk and its potential impact to a third party, like in this case, using cyber insurance to cover potential loss. As for the other options: 'Accept' means that the project team identifies the risk but decides not to take any action unless the risk occurs, which is not the case here. 'Avoid' indicates that a different strategy is adopted to completely sidestep the risk, for example, changing the project plan or scope completely, which again, was not done here. 'Mitigate' means to reduce the impact or likelihood of the risk, usually by applying measures within the project itself. In this case, the Project Manager hasn't taken any steps to reduce the chance of a cyber attack or lessen its impact.

Correct Answer: Mitigating

In this scenario, offering an incentive program to increase the adoption rate of the new platform represents a 'Mitigating' risk response strategy. In risk management, mitigation refers to steps taken to reduce the adverse impact of a risk. By providing an incentive, you address the problem at its root (customer resistance) and try to lessen its potential impact (low adoption rate). The other options - 'Transferring', 'Escalating', and 'Ignoring' - do not apply here. Transferring the risk means shifting the risk to another party, which we are not doing in this scenario. Escalating refers to moving the risk to a higher level of management, which is also not taking place here. Ignoring the risk carries the implication of avoiding the risk, but in this scenario, we are facing and dealing with the risk, not ignoring it.

Correct Answer: Mitigate

The correct answer is 'Mitigate'. This is a classic example of a risk mitigation strategy in project management. Mitigation involves taking proactive steps to reduce the probability and/or impact of a risk. In this case, the project team is actively working to reduce the risk of not meeting FDA approval standards by consulting with FDA experts and incorporating their feedback throughout the development process. This approach decreases the likelihood of failing to meet the standards, thus mitigating the risk. The other options are incorrect: 'Transfer the risk to FDA experts' is not accurate because the team is not transferring the risk to another party. They are still responsible for meeting the standards, but are seeking expert advice to help them do so. 'Enhance the probability of FDA approval' is not a standard risk response strategy. While the actions may indeed enhance the probability of approval, this option does not correctly categorize the type of risk response being used. 'Implement a proactive regulatory compliance approach' describes what the team is doing, but it does not correctly identify the risk response strategy being employed. This is a description of the action, not the category of risk response.