When a project team elects to purchase insurance,or adopts a fixed price contract with a vendor,or hires an expert,it is demonstrating which of the following risk response strategies?
A) avoid a threat
B) transfer a threat
C) mitigate a threat
D) assume a threat

Question

When a project team elects to purchase insurance,or adopts a fixed price contract with a vendor,or hires an expert,it is demonstrating which of the following risk response strategies? 
A) avoid a threat 
B) transfer a threat 
C) mitigate a threat 
D) assume a threat

Quizplus · Accepted Answer

The project team is transferring the risk to another party by purchasing insurance, adopting a fixed price contract, or hiring an expert. These actions shift the responsibility for managing the risk to someone else, making it a transfer strategy. Avoiding a threat would involve taking actions to eliminate or minimize the likelihood of the risk occurring in the first place. Mitigating a threat involves taking actions to reduce the probability or impact of the risk. Assuming a threat means accepting the risk and not taking any actions to manage it.

When a Project Team Elects to Purchase Insurance,or Adopts a Fixed