PMI Risk Management Professional Practice Exam

In risk management, what does avoidance aim to achieve with regard to threats?

1. Identify and monitor risks

2. Mitigate the impact of risks

3. Eliminate the risk entirely

4. Transfer the risk to another party

The correct answer is: Eliminate the risk entirely

Avoidance in risk management is a strategy specifically designed to eliminate a risk entirely. This is achieved by either changing the project plan to circumvent the risk or deciding not to engage in activities that may expose the project to the identified threat. For example, if a project risk relates to a new technology that has a high chance of failure, avoidance may involve choosing to use a more reliable technology instead. By opting for avoidance, organizations take proactive steps to eliminate potential adverse impacts, ensuring that they do not have to deal with the consequences of the risk materializing. This strategy is often considered the most effective way to manage risks because it fully removes the possibility of the threat occurring.