Risk Response Strategies

Correct Answer: Accept

In this case, the best strategy would be to 'Accept' because the potential issue has a very low probability of occurring. In project management, risky issues are often dealt with based on their probability and impact. Since the probability is very low, it means that the risk occurrence is less likely hence 'Accept' is the correct answer. 'Avoid' would involve changing the project plan to eliminate the risk which isn't necessary in this case due to the low probability. 'Transfer' involves shifting the risk to a third party which is also unnecessary for a very low probability event. Lastly, 'Exploit' is a strategy used for positive risks or opportunities, not for potential problems.

Correct Answer: Mitigate

The answer is 'Mitigate'. In project management, mitigation denotes taking steps to reduce the probability or impact of a prospective risk event. If a risk event had a major negative effect on the project's timeline, it indicates that the risk mitigation strategy was likely poorly executed or planned. On the other hand, 'Accept' involves acknowledging the risk but not taking any immediate action, so an event's occurrence would not necessarily mean this strategy was poorly implemented. 'Exploit' is a strategy used for positive risks or opportunities, and 'Transfer' represents shifting the impact of a risk to a third-party, neither of which are directly applicable in this context of a negative risk event affecting the project timeline.

Correct Answer: Mitigate

Mitigate is the most appropriate risk response strategy in this situation. Mitigation aims to reduce the probability or impact of a potential risk. Here, the project manager is facing a significant risk of conflict among team members, which may impact the project's success. Taking proactive measures such as conflict resolution strategies, team building exercises, and effective communication would mitigate this risk. The other risk response strategies would not be appropriate in this context. Accept would mean that the project manager takes no action and accepts the consequences if the risk occurs, which may harm the project. Avoid would mean changing the project plan to entirely eliminate the risk, which is not possible in this case as interpersonal conflicts are often unavoidable in a team setting. Finally, Transfer would involve shifting the risk to a third party, such as an insurance company, which is also not applicable in this scenario considering the nature of the risk.