You are the project manager of HWD project. It requires installation of some electrical machines.
You and the project team decided to hire an electrician as electrical work can be too dangerous to
perform. What type of risk response are you following?

A.
Avoidance

B.
Transference

C.
Mitigation

D.
Acceptance

Explanation:

As the risk is transferred to the third party (electrician), hence this type of risk response is
transference.
Answer A is incorrect. Risk avoidance means to evade risk altogether, eliminate the cause of the
risk event, or change the project plan to protect the project objectives from the risk event. Risk
avoidance is applied when the level of risk, even after the applying controls, would be greater than
the risk tolerance level of the enterprise.
Answer D is incorrect. Risk acceptance means that no action is taken relative to a particular risk;
loss is accepted if it occurs.
Answer C is incorrect. Risk mitigation attempts to reduce the probability of a risk event and its
impacts to an acceptable level. Risk mitigation can utilize various forms of control carefully
integrated together.