The answer is mitigate. Mitigation is the correct risk response strategy because it proactively reduces the probability or impact of a threat, and signing a backup supplier contract directly lowers the high impact of the supplier going out of business without eliminating the risk entirely. On the CompTIA Project+ PK0-005 exam, this scenario tests your ability to distinguish mitigation from transfer, avoidance, and acceptance—a common trap is confusing mitigation with transfer, but transfer shifts financial liability to a third party (like insurance), whereas mitigation keeps ownership while lessening the blow. Remember the memory tip: “Mitigation makes the damage smaller, not someone else’s problem.”
PK0-005 Project Management Concepts Practice Question
This PK0-005 practice question tests your understanding of project management concepts. 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 team has identified a risk that a key supplier may go out of business. The probability is low but the impact is high. The project manager decides to find an alternative supplier and sign a contract with them as a backup. This is an example of which risk response strategy?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Mitigate
Option A is correct because signing a backup contract reduces the impact of the risk, which is mitigation. Option B is wrong because transfer involves shifting the risk to a third party (e.g., insurance). Option C is wrong because acceptance means acknowledging the risk without proactive action. Option D is wrong because avoidance would eliminate the risk (e.g., using a different supplier entirely).
Key principle: NAT direction and interface roles matter as much as the IP address mapping. Inside/outside designation controls which traffic is translated.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
✓
Mitigate
Why this is correct
Mitigation reduces the probability or impact of a risk; having a backup supplier reduces impact.
Related concept
Static NAT maps one inside address to one outside address.
✗
Avoid
Why it's wrong here
Avoidance eliminates the risk entirely, e.g., by choosing a different supplier.
✗
Transfer
Why it's wrong here
Transfer involves shifting liability to another party, such as through insurance or warranties.
✗
Accept
Why it's wrong here
Acceptance means taking no proactive action; here the team is proactively securing a backup.
Common exam traps
Common exam trap: NAT rules depend on direction and matching traffic
NAT is not only about the public address. The inside/outside interface roles and the ACL or rule that matches traffic are just as important.
Detailed technical explanation
How to think about this question
NAT questions usually test address translation, overload/PAT behaviour, static mappings and whether the right traffic is being translated. Read the interface direction and address terms carefully.
KKey Concepts to Remember
Static NAT maps one inside address to one outside address.
PAT allows many inside hosts to share one public address using ports.
Inside local and inside global describe the private and translated addresses.
NAT ACLs identify traffic for translation, not always security filtering.
TExam Day Tips
→Identify inside and outside interfaces first.
→Check whether the scenario needs static NAT, dynamic NAT or PAT.
→Do not confuse NAT matching ACLs with normal packet-filtering intent.
Key takeaway
NAT direction and interface roles matter as much as the IP address mapping. Inside/outside designation controls which traffic is translated.
Real-world example
How this comes up in practice
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
Got this wrong? Here's your next step.
Review the four NAT address types (inside local, inside global, outside local, outside global), PAT port overload, and static vs dynamic NAT use cases. Then practise related PK0-005 NAT questions on configuration and troubleshooting.
Project Management Concepts — This question tests Project Management Concepts — Static NAT maps one inside address to one outside address..
What is the correct answer to this question?
The correct answer is: Mitigate — Option A is correct because signing a backup contract reduces the impact of the risk, which is mitigation. Option B is wrong because transfer involves shifting the risk to a third party (e.g., insurance). Option C is wrong because acceptance means acknowledging the risk without proactive action. Option D is wrong because avoidance would eliminate the risk (e.g., using a different supplier entirely).
What should I do if I get this PK0-005 question wrong?
Review the four NAT address types (inside local, inside global, outside local, outside global), PAT port overload, and static vs dynamic NAT use cases. Then practise related PK0-005 NAT questions on configuration and troubleshooting.
What is the key concept behind this question?
Static NAT maps one inside address to one outside address.
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Question Discussion
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