BUISENESS MANAGEMENT
RISK MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A risk response is established only for moderate risks while contingency plans are established for major risks.
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A risk response is part of the actual implementation plan and action is taken before the risk can materialize, while a contingency plan goes into effect only after the risk has transpired.
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A risk response is only effective when you are able to assess the likelihood of the risk and its impact on the project; all other risks are covered by contingency planning.
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A risk response is action that is the response to a risk once it has happened and the contingency plan is created by the customer if the risk response fails.
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Detailed explanation-1: -A risk response is part of the actual implementation plan and action is taken before the risk can materialize, while a contingency plan goes into effect only after the risk has transpired.
Detailed explanation-2: -Risk management is the practice of identifying, assessing, avoiding, mitigating, transferring, sharing and accepting risk. Contingency planning is the practice of identifying steps to be taken if a risk occurs.
Detailed explanation-3: -A contingency plan, which consists of an emergency response plan, a backup operations plan, and a post-disaster recovery plan, must be prepared for all general support system. A contingency plan consisting of a backup operations plan and a post-disaster recovery plan, must be prepared for all major applications.
Detailed explanation-4: -It is a detailed strategy for protecting your business against external risks and emergencies, such as natural disasters. Creating a contingency and risk assessment plan involves identifying the potential risk areas to create an effective response should those problems develop.
Detailed explanation-5: -A mitigation plan attempts to decrease the chances of a risk occurring, or decrease the impact of the risk if it occurs. It is implemented in advance. A contingency plan explains the steps to take after the identified risk occurs, in order to reduce its impact. Think of a contingency plan as the last line of defense.