A project manager identifies a risk that a critical vendor might go bankrupt. The project team decides to contract with a secondary vendor to be on standby for a retainer fee. Which risk response strategy is this?

Answer options:

Avoid

Mitigate

Transfer

How to approach this question

Ask: Did we eliminate it (Avoid)? Did we pass it to someone else (Transfer)? Did we reduce prob/impact (Mitigate)? Or did we just wait (Accept)?

Full Answer

B.Mitigate✓ Correct

This is mitigation because the action (hiring a standby) reduces the impact of the risk event. It is not transfer because the project still owns the problem of getting the work done.

Common mistakes

Confusing Transfer (insurance/warranties) with Mitigation (reducing impact via redundancy).

Question 07 All questions Question 09

Practice the full PMP Process Domain Practice Exam

60 questions · hints · full answers · grading

More questions from this exam

Q01A project team is developing a new financial software product using an agile approach. The produc...Hard Q02A hybrid project is developing a new smart home device. The hardware component follows a predicti...Hard Q03During a predictive construction project, the client requests a change to the interior design mat...Hard Q04A project manager is leading a team to develop a new mobile application. The market is highly vol...Hard Q05A global project team is facing difficulties with communication due to time zone differences. Cri...Hard

View all 60 questions →