PMI Risk Management Professional Practice Exam

In risk response planning, which strategy aims to reduce the impact of a risk?

1. Risk acceptance

2. Risk avoidance

3. Risk mitigation

4. Risk transference

The correct answer is: Risk mitigation

The strategy aimed at reducing the impact of a risk is risk mitigation. This approach involves taking proactive steps to lessen the potential negative effects or the likelihood of a risk event occurring. For instance, in the context of a project, implementing additional quality control measures can minimize the chance of defects that may lead to increased costs or project delays. By applying risk mitigation strategies, organizations can better prepare for potential challenges and enhance their ability to achieve project objectives. In contrast, risk acceptance refers to acknowledging the risk and deciding to proceed regardless, without implementing any protective measures. Risk avoidance entails altering project plans to eliminate the risk completely, often involving significant changes to scope or approach. Risk transference involves shifting the responsibility for managing the risk to another party, such as through insurance or outsourcing, rather than directly addressing how to lessen its impact. Thus, while each strategy serves a specific purpose in risk management, it is risk mitigation that specifically focuses on reducing the impact of risks.