David is the project manager of the HRC Project. He has identified a risk in the project, which
could cause the delay in the project. David does not want this risk event to happen so he takes
few actions to ensure that the risk event will not happen. These extra steps, however, cost the
project an additional $10,000. What type of risk response has David adopted?

A.
Avoidance

B.
Mitigation

C.
Acceptance

D.
Transfer

Explanation:

As David is taking some operational controls to reduce the likelihood and impact of the risk, hence
he is adopting risk mitigation. Risk mitigation means that actions are taken to reduce the likelihood
and/or impact of risk.
Answer C is incorrect. Risk acceptance means that no action is taken relative to a particular risk;

loss is accepted in case it occurs. As David has taken some actions in case to defend, therefore
he is not accepting risk.
Answer A is incorrect. Risk avoidance means that activities or conditions that give rise to risk are
discontinued. But here, no such actions are taken, therefore risk in not avoided.
Answer D is incorrect. David has not hired a vendor to manage the risk for his project; therefore
he is not transferring the risk.