Bill is the project manager of the JKH Project. He and the project team have identified a risk event
in the project with a high probability of occurrence and the risk event has a high cost impact on the
project. Bill discusses the risk event with Virginia, the primary project customer, and she decides
that the requirements surrounding the risk event should be removed from the project. The removal
of the requirements does affect the project scope, but it can release the project from the high risk
exposure. What risk response has been enacted in this project?

A.
Mitigation

B.
Transference

C.
Acceptance

D.
Avoidance

Explanation:
This is an example of the avoidance risk response. Because the project plan has
been changed to avoid the risk event, so it is considered the avoidance risk response. Risk
avoidance is a technique used for threats. It creates changes to the project management plan that
are meant to either eliminate the risk completely or to protect the project objectives from its impact.
Risk avoidance removes the risk event entirely either by adding additional steps to avoid the event
or reducing the project scope requirements. It may seem the answer to all possible risks, but
avoiding risks also means losing out on the potential gains that accepting (retaining) the risk might
event and they accept that the event could happen and could have an impact on the project.
Acceptance is usually used for risk events that have low risk exposure or risk events in which the
is involved with the actions to reduce an included risk’s probability and/or impact on the project’s
objectives. As the risk was removed from the project, this scenario describes avoidance, not
ownership and management of the risk event is transferred to a third party – usually for a fee.