A project manager has contracted a third-party vendor to achieve milestones. Which of the following risk strategies is the project manager applying?

Risk transfer involves legally shifting the financial or operational responsibility for a risk to a third party; by contracting a vendor to achieve milestones, the project manager transfers delivery risk to that vendor, enforced through contractual obligations, penalties, and performance guarantees.

Acceptance means acknowledging a risk and deciding to deal with its consequences if it occurs rather than taking any proactive action to reassign or reduce it.

Avoidance means changing the project plan to completely eliminate the risk and its triggers, not delegating the associated work and responsibility to an external party.

Mitigation involves reducing the probability or impact of a risk through internal proactive actions, not by contractually reassigning responsibility to an outside vendor.