PK0-003 · Question #402
Which of the following risk response strategies involves shifting the negative impact of a threat, along with ownership of the response, to a third party?
The correct answer is A. Risk transfer. Risk transfer is a strategy where the responsibility for managing a specific risk and its potential negative impact is shifted to an external party. This typically involves contracts or insurance policies.
Question
Which of the following risk response strategies involves shifting the negative impact of a threat, along with ownership of the response, to a third party?
Options
- ARisk transfer
- BRisk avoidance
- CRisk sharing
- DRisk mitigation
How the community answered
(36 responses)- A89% (32)
- B3% (1)
- C3% (1)
- D6% (2)
Why each option
Risk transfer is a strategy where the responsibility for managing a specific risk and its potential negative impact is shifted to an external party. This typically involves contracts or insurance policies.
Risk transfer involves shifting the negative impact of a threat, along with ownership of the response, to a third party. This is commonly done through insurance, warranties, or outsourcing agreements, where the financial or operational burden of a specific risk is borne by another entity.
Risk avoidance is a strategy of eliminating the threat entirely by changing the project plan to remove the cause of the risk.
Risk sharing involves allocating ownership for a risk to more than one party, often used for opportunities rather than threats, and typically doesn't involve shifting the entire ownership.
Risk mitigation involves reducing the probability or impact of a threat to an acceptable level through various proactive measures.
Concept tested: Risk management strategies - transfer
Topics
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