Business Continuity Professional Exam Prep

Category - Emergency Response

As per the project schedule, a team of consultants have to travel to Mexico to implement a new warehouse management product at its manufacturing locations. However, the project manager decides to defer the activity considering a recent flu breakout in the region. This is an example of risk _____________:
  1. Reward
  2. Sharing
  3. Transfer
  4. Avoidance
Explanation

Answer. D. Avoidance. In this case, avoiding the risk comes with a major cost - a serious project delay might occur as a result. However, these are decisions that a management team must often make.

Key takeaway: A good business continuity plan might have made this decision for the manager. The manager might not want his/her project to get knocked off track, and thus is willing to take the risk that no one will get sick. However, a good business continuity planner may already have implemented a policy that absolutely prevents this.
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