Following are four short case study scenarios that represent risk response category choices. Match each scenario with one of the four possible risk responses (accept, avoid, transfer, mitigate) and explain your answer.

a)

After researching all the possible software applications on the market, your team has reduced the list to just two choices. The first application delivers on 95 percent of the needed requirements, but the vendor is very new and has a small customer base. The second application delivers on 85 percent of the needed requirements; the vendor has been in business for many years and has a large customer base. The company, being risk averse, decides on the second application package.

b)

The current proposed project is to create a custom software application, which will add functionality identified during the recent gap analysis between the purchased accounting software package and the user requirements. The custom software must interface with the new software, but your organization has no one trained in the new software application. The project team has decided to hire a consulting company to develop the new application.