Which type of strategies have you used to deal with the risks involved with that particular work?

You are the project manager for a construction project. The project includes a work that involves very high financial risks. You decide to insure processes so that any ill happening can be compensated. Which type of strategies have you used to deal with the risks involved with that particular work?

A.
Mitigate

B.
Transfer

C.
Avoid

D.
Accept

Explanation:

Transfer strategy is one of the four strategies for negative risks or threats. Risk transfer involves shifting some or all of the negative impact of a threat, along with ownership of the response to a third party. However, transferring the risk simply gives another party responsibility for its management, it does not eliminate it.
Answer option C is incorrect. Risk avoidance involves changing the project management plan to eliminate the threat entirely.
Answer option A is incorrect. Mitigation of risk implies a reduction in the probability and impact of an adverse risk event to be within acceptable threshold limits.

Answer option D is incorrect. This strategy is adopted because it is seldom possible to eliminate all threats from a project. This strategy indicates that the team is ready to take the risk. Reference: "A Guide to the Project Management Body of Knowledge, (PMBOK Guide), Fourth Edition."