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? Response:

Avoidance is eliminating the risk by changing the project plan to remove the cause of the risk.

Mitigation is reducing the probability or impact of a risk event to an acceptable threshold.

Exploit is a strategy for opportunities (positive risks) where actions are taken to ensure the opportunity occurs and benefits are realized.

Transference, or sharing, is a risk response strategy where the project team shifts the responsibility for managing the risk, and the impact of the risk, to a third party. By hiring another company for hardware work, the project manager transfers the risks associated with that work to the external vendor.