Which of the following strategies is used to deal with risks that may have a negative impact on project objectives?

Question

Options

• AExploit
• BShare
• CEnhance
• DTransfer

• A
  3% (1)
• B
  3% (1)
• C
  10% (3)
• D
  83% (24)

Explanation

Transfer is the correct strategy because it shifts the negative impact (and ownership) of a threat to a third party - common examples include purchasing insurance, using fixed-price contracts, or outsourcing risky work. The key is that the risk itself still exists; you're just moving who bears its consequences.

Exploit (A), Share (B), and Enhance (C) are all strategies for positive risks (opportunities), not threats - Exploit ensures an opportunity occurs, Share allocates it to a party better positioned to capture it, and Enhance increases its probability or impact. None of these are appropriate responses to something that could harm project objectives.

Memory tip: Think of it this way - if a risk is bad, you want to Transfer it like a hot potato to someone else. The three distractors (Exploit, Share, Enhance) all sound constructive/positive, which is a clue they belong to the opportunity side of risk management. A common mnemonic for threat strategies is MATA: Mitigate, Avoid, Transfer, Accept.

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