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PK0-005 Practice Question: A project manager is reviewing the risk register…

A project manager is reviewing the risk register and sees that a high-probability, high-impact risk has a response strategy of 'mitigate' with a planned action to purchase insurance. This is an example of which risk response strategy?

⚠ Common exam trap

The trap here is that the question labels the response strategy as 'mitigate' in the scenario, leading candidates to select 'Mitigate' without recognizing that the specific action (purchasing insurance) is a textbook example of 'Transfer,' testing whether you can differentiate the strategy from the action label.

Answer choices

Why each option matters

Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.

Correct answer & explanation

Transfer

Purchasing insurance transfers the financial risk of a loss to the insurance company, making this a clear example of the 'Transfer' risk response strategy. In the PMI framework, transfer shifts the impact of a threat to a third party, often through insurance or contracts, without eliminating the risk itself. The question explicitly states the response strategy is 'mitigate,' but the planned action of buying insurance is a transfer technique, which is the key distinction tested here.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • Accept

    Why it's wrong here

    Acceptance involves acknowledging the risk without proactive action.

  • Mitigate

    Why it's wrong here

    Mitigation reduces probability/impact, but purchasing insurance transfers the risk.

  • Transfer

    Why this is correct

    Insurance transfers the financial risk to a third party.

  • Avoid

    Why it's wrong here

    Avoidance eliminates the threat entirely.

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JA

Written by Johnson Ajibi, MSc IT Security

Senior Network & Security Engineer · founder of Courseiva

This PK0-005 practice question is part of Courseiva's free CompTIA certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the PK0-005 exam.