A part of a project deals with the hardware work. As a project manager, you have decided to hire a
company to deal with all hardware work on the project. Which type of risk response is this?
A.
Exploit
B.
Mitigation
C.
Transference
D.
Avoidance
Explanation:
When you are hiring a third party to own risk, it is known as transference risk
response. Transference is a strategy to mitigate negative risks or threats. In this strategy,
consequences and the ownership of a risk is transferred to a third party. This strategy does not
eliminate the risk but transfers responsibility of managing the risk to another party. Insurance is an
be selected for risks with positive impacts where the organization wishes to ensure that the
to avoid the risk, this is an example of avoidance.