Question

During execution of a predictive infrastructure project, the risk owner reports that a previously identified risk—a rare regional power grid fluctuation that could corrupt data during nightly batch processing—has a low probability but would cause severe, irreversible data loss if it occurred. A backup generator and redundant storage solution would cost 8% of the remaining budget. The sponsor is cost-conscious. What is the project manager's BEST course of action?

Accepted Answer

Perform a cost-benefit analysis comparing the mitigation cost against the potential impact, then present the recommendation to the sponsor for a decision

Answer

Accept the risk passively since its probability is low and document it in the risk register

Answer

Immediately purchase the backup generator and redundant storage to protect the deliverable

Answer

Transfer the risk by purchasing insurance regardless of the impact severity