The appropriate methods for handling cost risk are:

1. Item-by-item price risk analysis: This method involves analyzing each item's price risk in the project. It helps in understanding the potential cost fluctuations and their impact on the overall project cost.

2. Back-up or alternate plans: Having a backup or alternate plan is always a good strategy when dealing with cost risk. If the original plan becomes too costly, the alternate plan can be implemented to keep the project within the budget.

Reducing project duration and lump sum approach are not typically methods for handling cost risk. Reducing project duration might even increase cost risk due to the potential need for additional resources to meet tighter deadlines. The lump sum approach is a type of contract where the total cost is agreed upon in advance, but it doesn't necessarily manage cost risk, as any cost overruns are typically the responsibility of the contractor, not the project manager.

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The appropriate methods for handling cost risk are:

1. Item-by-item price risk analysis: This method involves analyzing each item's price risk in the project. It helps in understanding the potential cost fluctuations and their impact on the overall project cost.

2. Back-up or alternate plans: Having a backup or alternate plan is always a good strategy when dealing with cost risk. If the original plan becomes too costly, the alternate plan can be implemented to keep the project within the budget.

Reducing project duration and lump sum approach are not typically methods for handling cost risk. Reducing project duration might even increase cost risk due to the potential need for additional resources to meet tighter deadlines. The lump sum approach is a type of contract where the total cost is agreed upon in advance, but it doesn't necessarily manage cost risk, as any cost overruns are typically the responsibility of the contractor, not the project manager.

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The appropriate methods for handling cost risk are:

1. Item-by-item price risk analysis: This method involves analyzing each item's price risk in the project. It helps in understanding the potential cost fluctuations and their impact on the overall project cost.

2. Back-up or alternate plans: Having a backup or alternate plan is always a good strategy when dealing with cost risk. If the original plan becomes too costly, the alternate plan can be implemented to keep the project within the budget.

Reducing project duration and lump sum approach are not typically methods for handling cost risk. Reducing project duration might even increase cost risk due to the potential need for additional resources to meet tighter deadlines. The lump sum approach is a type of contract where the total cost is agreed upon in advance, but it doesn't necessarily manage cost risk, as any cost overruns are typically the responsibility of the contractor, not the project manager.

Multiple Choice QuestionWhich are appropriate methods for handling cost risk?Multiple choice question.Item-by-item price risk analysisReducing project durationLump sum approachBack-up or alternate plans

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