A project manager buys an extended warranty for a set of servers. Which of the following risk management strategies is the manager using?

The risk management strategy being used is Transfer. This strategy involves shifting the negative impact of a threat, along with ownership of the response, to a third party. By purchasing an extended warranty, the project manager transfers the financial risk associated with server failure to the vendor or warranty provider. Should a server fail, the third party is responsible for the cost of repair or replacement, thus protecting the project's budget from the financial impact of this specific risk.

B. Avoid: This strategy involves changing the project plan to eliminate the threat entirely. In this case, it would mean not purchasing the servers at all.

C. Accept: This strategy involves acknowledging a risk and not taking any action unless it occurs. The manager took a proactive step by buying a warranty.

D. Mitigate: This strategy aims to reduce the probability or impact of a risk. An example would be buying servers with redundant power supplies to reduce the chance of failure.

1. CompTIA Project+ PK0-005 Exam Objectives. (2022). Version 3.0. Section 2.4

"Given a scenario

apply the appropriate risk management activities

" lists the key risk response strategies as Avoid

Transfer

Mitigate

and Accept. This document establishes the foundational knowledge domain for the exam.

2. University of Washington

Department of Civil & Environmental Engineering. (n.d.). CEE 441: Project Risk Management. Course Lecture Notes. In discussions on risk response planning

the "Transfer" strategy is defined as shifting the consequence of a risk to a third party. The notes explicitly cite "insurance policies or warranties" as primary examples of risk transference.

3. Kerzner

H. (2017). Project Management: A Systems Approach to Planning

Scheduling

and Controlling (12th ed.). John Wiley & Sons. Chapter 18

"Risk Management

" section 18.9

describes risk handling

where transference is detailed as "deflecting or transferring the risk to a third party

" with insurance and warranties being common methods. This is a standard academic textbook for project management.