A PRINCE2 project is evaluating a risk where a critical raw material might become unavailable due to geopolitical tensions. The project team identifies an alternative recycled material that eliminates the dependency on the imported material. Which risk response category is this?
Avoid eliminates the threat entirely by removing its cause. Replacing the imported raw material with recycled material eradicates the geopolitical dependency rather than reducing, transferring or accepting it, so the risk can no longer occur.
Why this answer
Avoiding a risk means eliminating the threat entirely by removing the cause or changing the approach so the risk no longer exists. By switching to an alternative recycled material, the project removes the dependency on the imported raw material — the geopolitical risk can no longer affect the project because the exposure is gone. This is the defining characteristic of the Avoid response in PRINCE2's Risk practice.
Exam trap
The trap is confusing Avoid with Mitigate — candidates often pick Mitigate when the project has eliminated the risk source entirely, but PRINCE2 reserves Avoid for responses that remove the threat rather than reduce it.
How to eliminate wrong answers
Option B is wrong because Accept means acknowledging the risk and doing nothing proactive (or only contingency planning) — the project would still depend on the imported material and bear the geopolitical exposure. Option C is wrong because Mitigate means reducing the probability or impact of the risk while still accepting some residual exposure — the dependency would remain, just with controls. Option D is wrong because Transfer means shifting the financial or operational impact to a third party (e.g., insurance, supplier contract) — the risk still exists and the project still depends on the material, just with someone else bearing the consequence.