RISK TREATMENT METHOD.

Running head: RISK TREATMENT METHOD
Risk Treatment Method
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1RISK TREATMENT METHOD
Answer to question 1:
Transfer risk treatment method is used in this case. In this case, the risk is to be
transferred to the third party. Risk transfer is a realistic approaches to the risk management as
it can accept that sometimes they are possibilities of occurrence of incidents, yet it can ensure
that the business can prepare to cope with the impact of the risks (Hopkin 2018).
Answer to question 2:
Sharing risk treatment method is used in this case. It is the distribution of the risks to
various organization in addition to individuals. It is performed by various reasons such as
insurance products plus self-insurance strategies (Glendon and Clarke 2015). The
organization can share the project risks when each one can understand project deliverables as
well as expecations properly. In this case, the risks are to be shared by closely working
business partners.
Answer to question 3:
Transference of the risks means there is outsourcing of the business unit and
functions, removed it from the organization and contract with others entity to do the project
work. Therefore, it means there is outsourcing of the project risks (McNeil, Frey and
Embrechts 2015). Outsourced function is far outside of business core competency as well as
main mission of the organization.
Answer to question 4:
Risk avoidance is elimination of the project risks, activities plus exposures which can
provide negative effect on the assets of the project organization.