I have am confused on the following question (source: ESI PMP Exam Practice Test)
You are managing the construction of a highly sophisticated data center in Port Moresby, Papua New Guinea. Although this location offers significant economic advantages; the threat of typhoons has caused you to create a backup plan to operate in Manila in case the center is flooded. This plan is an example of what type of risk response?
A. Passive Avoidance
C. Active Acceptance
Answer says correct choice is C since “Active Acceptance”
My confusion is, Both choices B and C are correct answers.
Mitigation means you are reducing the probability/impact of the result caused by any risk event. For example you are asked to deliver a product within a short period of time. Here the result of the risk event is we may end up in poor quality. You can mitigate this doing more testing by involving a separate testing team. Here we are reducing the probability of the product getting delivered with defects.
Ok, now let us look at your question. It says the location is good but has the threat of typhoons. The result of the risk event is damage to the work location, resources, flood etc. If we would have built the work environment to withstand the cyclone then we can say we have mitigated. Here we are accepting the risk saying Yes the cyclone will cause the damage, we can't do anything. There are 2 types of acceptance. One is passive simply document the risk and that is it and the rest will be taken care when the risk event occurs. We will not take any proactive steps. Another one is active acceptance where we are creating a plan (in this case backup plan is created to work in alternate location) and also we may allocate some contingency reserve to handle the risk. In this case we are identifying an alternate location hence this is active acceptance.
If we would have avoided to construct the data center then it is AVOID.
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