List four common risk response strategies and provide a short example of each.

List four common risk response strategies and provide a short example of each.

• A. Mitigate (reduce probability) e.g., implement redundant components; Avoid (eliminate risk) by changing scope; Transfer (insure or contract for risk); Accept (document risk and proceed with contingency).
• B. Mitigate by reducing probability; e.g., assign more testers.
• C. Avoid by changing scope; e.g., expand features.
• D. Transfer by insuring or outsourcing; e.g., hire external vendor.

Answer: (A)

In project risk management, four common risk response strategies are used to address threats: mitigate, avoid, transfer, and accept. Mitigate means reducing either the probability that the risk occurs or its impact if it does. A practical example is adding redundant components or extra testing to prevent a single failure from derailing the project. Avoid means eliminating the risk by changing the plan or scope so the risk no longer applies. For instance, removing a risky feature or choosing a safer design reduces exposure to that risk. Transfer means shifting the risk to another party through contracts or insurance. Outsourcing work to a vendor or purchasing appropriate insurance are classic examples, so the risk is borne by someone else. Accept means acknowledging the risk and proceeding with a contingency plan or reserve in place. This might involve documenting the risk and setting aside resources for potential mitigation if it materializes. The set provided captures all four strategies with fitting examples—mitigate with redundancy, avoid by changing scope, transfer via insurance or outsourcing, and accept with a contingency plan. Other options typically show only one strategy or pair a strategy with an example that doesn’t align, making them incomplete.

In project risk management, four common risk response strategies are used to address threats: mitigate, avoid, transfer, and accept.

Mitigate means reducing either the probability that the risk occurs or its impact if it does. A practical example is adding redundant components or extra testing to prevent a single failure from derailing the project.

Avoid means eliminating the risk by changing the plan or scope so the risk no longer applies. For instance, removing a risky feature or choosing a safer design reduces exposure to that risk.

Transfer means shifting the risk to another party through contracts or insurance. Outsourcing work to a vendor or purchasing appropriate insurance are classic examples, so the risk is borne by someone else.

Accept means acknowledging the risk and proceeding with a contingency plan or reserve in place. This might involve documenting the risk and setting aside resources for potential mitigation if it materializes.

The set provided captures all four strategies with fitting examples—mitigate with redundancy, avoid by changing scope, transfer via insurance or outsourcing, and accept with a contingency plan. Other options typically show only one strategy or pair a strategy with an example that doesn’t align, making them incomplete.