PMI CAPM (Certified Associate in Project Management) Examination Content OutlineRisk Management and ComplianceMedium
A project manager is evaluating potential responses for a high-impact, high-probability threat. The team proposes outsourcing a critical component to a specialized vendor who has expertise in mitigating similar risks. Which risk response strategy is being considered?
- AMitigate
- BAccept
- CAvoid
- DTransfer
Show answer & explanationAnswer & explanation
Correct answer: D. Transfer
Transferring a risk involves shifting the impact of a threat, along with ownership of the response, to a third party, such as outsourcing to a specialized vendor.
Why the other options are wrong
- A. Mitigate involves reducing the probability or impact of a risk, but outsourcing shifts the responsibility, not just reduces it.
- B. Accept involves acknowledging the risk without taking action, which is not what outsourcing does.
- C. Avoid involves eliminating the threat entirely, which is not achieved by outsourcing a component.
Risk Transfer
A risk response strategy for threats that involves shifting the impact of a threat to a third party, often through contracts, insurance, or outsourcing.
- Shifts responsibility and financial impact.
- Does not eliminate the risk, but moves it.
- Commonly achieved via insurance, contracts, or outsourcing.
Memory trick: Avoid, Transfer, Mitigate, Accept: ATMA - Always Take More Action!