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?

Avoidance means changing the project plan to eliminate the risk entirely, not delegating it to another party.

Mitigation reduces the probability or impact of a risk but keeps the risk within the project rather than transferring it.

Exploit is a positive risk response strategy used to maximize opportunities, not to handle threats.

Risk transference involves assigning the responsibility and consequences of a risk to an outside party, typically through contracts, warranties, or outsourcing agreements. By hiring a company to handle all hardware work, the project manager moves the hardware-related risk exposure to that vendor, making transference the correct response strategy.