Q: Imagine that your company is considering using a vendor. The vendor makes quality products, but you have learned they have a reputation for shipping delays. Ultimately, you decide to use a different vendor. Which risk mitigation strategy did you use?
Q: Let’s say your business is thinking about working with a vendor. Although you’ve heard that the vendor has a history of delivering delays, they nevertheless provide high-quality goods. In the end, you choose to work with an other supplier. Which technique for mitigating risk did you employ?
- Avoid the risk
- Reduce the risk
- Control the risk
- Accept the risk
Explanation: You have taken the necessary steps to protect yourself against the possible risk that is linked with delays in product delivery by selecting a different vendor owing to the known reputation for shipping delays. Making choices or judgments that remove the potential of the risk happening is an example of avoidance, which entails completely avoiding the risk in question.