Risk Management Question 21

[admin]

Purchasing insurance is best considered an example of?

a) Mitigation
b) Transfer
c) Acceptance
d) Avoidance

[admin]

The correct answer is B.

To mitigate risk (choice A) we either reduce the probability of the event happening or reduce its impact. Many people think of using insurance as a way of decreasing impact. However, mitigating risk is taking action before a risk event occurs. Acceptance of risk (choice C) does not involve such action as purchasing insurance. Avoidance of risk (choice D) means that we change the way we will execute the project so the risk is no longer a factor. Transference is passing the risk off to another party.

Pass PMP in the First Attempt : PMP Strategy

Revise Risk Management Concepts: Project Risk Management

Quiz:
20 Questions Challenge
50 Questions Challenge

[Author]

Posts