PMI CAPM (Certified Associate in Project Management) Examination Content OutlinePredictive, Plan-Based MethodologiesMedium
During the execution of a complex infrastructure project, a project manager identifies a potential risk that, if it occurs, could severely delay the project and incur significant cost overruns. The risk has a high probability and high impact. The project manager decides to implement a strategy that involves changing the project plan to eliminate the threat entirely. Which risk response strategy is being employed?
- AAvoid
- BAccept
- CTransfer
- DMitigate
Show answer & explanationAnswer & explanation
Correct answer: A. Avoid
Avoid is a risk response strategy where the project team acts to eliminate the threat or protect the project from its impact. This could involve changing the project plan, scope, or objectives to prevent the risk from occurring.
Why the other options are wrong
- B. Accept involves acknowledging the existence of a risk but taking no proactive action, either passively or actively.
- C. Transfer involves shifting the responsibility for managing the risk to a third party, often through insurance or contracts.
- D. Mitigate involves reducing the probability and/or impact of a risk event to an acceptable threshold.
Risk Avoidance
A risk response strategy that involves changing the project plan to eliminate the threat entirely or protect the project objectives from its impact.
- Eliminates the cause of the risk.
- Can involve changing scope, schedule, or strategy.
- Most effective for high probability, high impact threats.
Memory trick: Avoid the monster, Mitigate its bite, Transfer the burden, or Accept the fight.