One project in a program needs to be completed in 6 months because there is a large bonus for early completion. Consequently, the program manager transfers all resources to this project and arranges for employees to receive overtime pay. Which risk response strategy is the program manager using in this scenario?

The scenario describes a positive risk, or an opportunity, which is the large bonus for early completion. The program manager is implementing the "Exploit" strategy. This strategy is used for high-priority opportunities and involves taking aggressive and decisive actions to ensure the opportunity is fully realized. By transferring all resources and authorizing overtime, the program manager is not just increasing the chances but is actively working to make the early completion a certainty, thereby guaranteeing the bonus. This commitment of significant resources to ensure the opportunity's occurrence is the hallmark of the Exploit strategy.

A. Escalate: This is incorrect because the program manager is actively managing the opportunity within their authority, not passing responsibility to a higher level.
B. Transfer: This strategy is primarily for negative risks (threats) and involves shifting ownership to a third party, which is not occurring in this scenario.
C. Enhance: While similar, "Enhance" aims to increase the probability or impact of an opportunity. "Exploit" is more aggressive, seeking to guarantee it, which better reflects the action of allocating all resources.

1. Project Management Institute. (2017). A Guide to the Project Management Body of Knowledge (PMBOK® Guide) (6th ed.). Project Management Institute.

Section 11.5.2.5, Strategies for Opportunities: "The Exploit strategy may be selected for high-priority opportunities where the organization wants to ensure that the opportunity is realized. This strategy seeks to eliminate the uncertainty associated with a particular upside risk by making the opportunity definitely happen... Examples of exploiting opportunities include assigning an organization’s most talented resources to the project to reduce the time to completion..." This directly aligns with the scenario.

2. Project Management Institute. (2019). The Standard for Risk Management in Portfolios, Programs, and Projects. Project Management Institute.

Section 5.5.3, Strategies for Opportunities, p. 51: "The exploit strategy may be selected for high-priority opportunities where the organization wants to ensure that the opportunity is realized." This is contrasted with the Enhance strategy, which "is used to increase the probability and/or the positive impacts of an opportunity." The decisive action in the question ("transfers all resources") is characteristic of Exploiting, not just Enhancing.

3. Hillson, D. (2002). The Risk Breakdown Structure (RBS) as an Aid to Effective Risk Management. Proceedings of the PMI Annual Seminars & Symposium. Project Management Institute.

This paper, while focused on RBS, discusses standard risk response strategies. It reinforces the distinction that "Exploit" involves taking "whatever measures are required to grasp the opportunity," which is a more forceful approach than "Enhance," which aims to "increase its probability or impact." The scenario's actions are clearly forceful.