PRINCE2F PRINCE2 Practices Practice Question
A risk has been identified that could cause a delay to the project. The project team decides to purchase insurance to cover the financial impact. Which risk response type is this?
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
Transferring the financial impact to a third party (insurance) is a 'transfer' response. 'Reduce' would involve actions to lower probability or impact. 'Accept' would be to take the risk without action.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Transfer
Why this is correct
Insurance transfers the financial impact to an insurer.
- ✗
Avoid
Why it's wrong here
Avoid would mean changing the plan to eliminate the risk.
- ✗
Accept
Why it's wrong here
Accept means no proactive action; insurance is proactive.
- ✗
Reduce
Why it's wrong here
Reduce involves actions to decrease probability or impact, not transfer.
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JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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