Which of the following is the BEST risk response strategy to use for a risk event that has a low probability of occurring and low impact on the project?

Question

Options

• AAvoid
• BTransfer
• CAccept
• DMitigate

• A
  2% (1)
• B
  7% (3)
• C
  88% (37)
• D
  2% (1)

Explanation

Risk response strategies are chosen based on the risk's probability and impact. For a risk that is both low probability and low impact, the cost and effort of actively responding (avoiding, transferring, or mitigating) would exceed the potential harm of the risk itself. Acceptance (C) - either passive (no action) or active (setting a small contingency) - is the rational, cost-effective choice. Avoidance (A) is reserved for high-impact risks where the project plan must change to eliminate the threat entirely. Transfer (B) involves shifting the financial burden to a third party (e.g., via insurance), appropriate for high-impact, hard-to-control risks. Mitigation (D) reduces the probability or impact of a risk and is warranted for moderate-to-high risks. The risk matrix principle in PMI guidance is clear: low/low risks should be accepted.

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