John is the project manager of the HGH Project for her company. He and his project team have agreed that if the vendor is late by more than ten days they will cancel the order and hire the NBG Company to fulfill the order. The NBG Company can guarantee orders within three days, but the costs of their products are significantly more expensive than the current vendor. What type of response does John adopt here? 

Answer options:

A. Contingent response strategy
B. Risk avoidance
C. Risk mitigation
D. Expert judgment

A

As in this case John and his team mates have pre-planned the alternative if the vendor would late in placing the order. Therefore, it is contingent response strategy. Contingent response strategy, also known as contingency planning, involves adopting alternatives to deal with the risks in case of their occurrence. Unlike the mitigation planning in which mitigation looks to reduce the probability of the risk and its impact, contingency planning doesn`t necessarily attempt to reduce the probability of a risk event or its impacts. Contingency comes into action when the risk event actually occurs. Incorrect Answers: B: Risk avoidance is the method which involves creating solutions that ensure a specific risk in not realized. C: Risk mitigation attempts to eliminate or significantly decrease the level of risk present. Here no alternatives are pre-planned. D: Expert judgment is utilized in developing risk responses, including feedback and guidance from risk management experts and those internal to the project qualified to provide assistance in this process.