The project manager decides to conduct a meeting with the team and management after a new risk has been identified. After the meeting, the decision is to allow the risk to occur. This is an example…

Question

Options

• AMitigate
• BAccept
• CAvoid
• DTransfer

• A
  5% (1)
• B
  76% (16)
• C
  14% (3)
• D
  5% (1)

Explanation

Accept is correct because the team consciously decided to allow the risk to occur rather than take any action to change its probability or impact - this is the definition of risk acceptance, which can be passive (do nothing) or active (establish a contingency reserve).

Mitigate (A) is wrong because mitigation involves taking steps to reduce the probability or impact of a risk, not simply allowing it to happen. Avoid (C) is wrong because avoidance means changing the project plan to eliminate the risk entirely. Transfer (D) is wrong because transference shifts the financial consequence of a risk to a third party (e.g., insurance, outsourcing), which was not done here.

Memory tip: Think of "Accept" as the "do nothing on purpose" strategy - the key signal in the question is the phrase "allow the risk to occur," which maps directly to acceptance. If you see any action being taken (reducing, eliminating, or shifting), it's one of the other three.

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