3. Project Manager John Boy has a policy of only using experienced, dependable, and proven sellers instead of selecting sellers through open competition as a means to manage procurement risk. What risk management technique is John Boy using? A. Risk Acceptance. B. Risk Mitigation. C. Risk Transfer D. Risk Avoidance.

Question

Business

Guadalupe

19 April, 16:50

3. Project Manager John Boy has a policy of only using experienced, dependable, and proven sellers instead of selecting sellers through open competition as a means to manage procurement risk. What risk management technique is John Boy using? A. Risk Acceptance. B. Risk Mitigation. C. Risk Transfer D. Risk Avoidance.

+3

Answers (1)

Know the Answer?

Abdullah Duffy · Answer 1

Answer: Risk mitigation

Explanation: In simple words, risk mitigation refers to the strategy in which the management of an organisation tries to reduce the threat that may occur to the business in future by taking suitable risk in present.

Usually the threats it reduces related to the problems affecting the continuity of the business.

In the given case, The manager of the company is employing highly qualified personnel instead of less qualified to manage procurement risk. Hence he is taking actions to reduce risk that may arise in future. Thus, the correct option is B.