Quick Answer
The answer is transfer. Purchasing insurance is the textbook example of the risk response strategy known as transfer, because it shifts the financial impact of a potential loss to a third party—the insurance company—without actually eliminating the underlying risk. In the CompTIA Project+ PK0-005 exam, this concept tests your ability to distinguish between the planned action and the labeled strategy; here, the risk register incorrectly labels the response as “mitigate,” but buying insurance is a pure transfer technique. A common trap on the exam is confusing transfer with mitigate—mitigate reduces the probability or impact directly, while transfer simply passes the financial burden elsewhere. Remember the memory tip: “Transfer the check, not the wreck”—if you’re paying someone else to cover the loss, you’re transferring, not mitigating.
This PK0-005 practice question tests your understanding of tools and documentation. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
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?
Accept
Why wrong: Acceptance involves acknowledging the risk without proactive action.
Mitigate
Why wrong: Mitigation reduces probability/impact, but purchasing insurance transfers the risk.
Transfer
Insurance transfers the financial risk to a third party.
Avoid
Why wrong: Avoidance eliminates the threat entirely.
Answer choices
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.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
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.
Related concept
Read the scenario before looking for a memorised answer.
Avoid
Why it's wrong here
Avoidance eliminates the threat entirely.
Common exam traps
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.
Detailed technical explanation
In risk management, 'Transfer' typically uses contractual mechanisms like insurance policies, warranties, or fixed-price contracts to shift liability. For example, a construction project might transfer the risk of weather delays to a subcontractor via a penalty clause, while insurance transfers financial loss to an insurer in exchange for premiums. The PMBOK Guide distinguishes transfer from mitigate by noting that transfer does not reduce the inherent risk probability or impact—it only reassigns ownership of the impact.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
A small business has 20 workstations on the 192.168.1.0/24 network and one public IP from its ISP. The router uses PAT (NAT overload) so all 20 devices share one public address using different source ports. NAT questions test whether you understand the four address terms and which direction each translation applies.
What to study next
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FAQ
Tools and Documentation — This question tests Tools and Documentation — Read the scenario before looking for a memorised answer..
The correct answer is: 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.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 24, 2026
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.
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