PRINCE2 Threat Response Types: Avoid, Reduce, Transfer, Accept, Share
Which THREE of the following are risk responses for threats?
Quick Answer
The correct answer is Transfer, along with Avoid and Reduce, as these are the three PRINCE2 threat response types. These responses are designed to manage negative risks by either eliminating the threat entirely through Avoid, lowering its probability or impact via Reduce, or shifting the financial burden to a third party with Transfer. On the PRINCE2 Foundation exam, this question tests your ability to distinguish threat responses from opportunity responses, such as Exploit or Enhance, and a common trap is confusing Transfer with Share, which is used for positive risks. A helpful memory tip is to think of the acronym TAR—Transfer, Avoid, Reduce—as the three core actions you take when a risk is bad news.
⚠ Common exam trap
PeopleCert often tests the confusion between threat and opportunity responses, specifically that 'Enhance' and 'Exploit' are only for opportunities, not threats, leading candidates to incorrectly select them as valid threat responses.
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
✓
Reduce
In PRINCE2, risk responses for threats are designed to reduce the probability or impact of a negative risk. 'Reduce' (Option B) is a correct threat response because it involves taking action to lower the probability or impact of a threat, such as implementing additional testing to reduce the risk of software failure. 'Avoid' (Option C) is correct because it involves changing the project plan to eliminate the threat entirely, for example, by choosing a different technology stack to avoid a known security vulnerability. 'Transfer' (Option E) is correct because it shifts the financial impact of a threat to a third party, such as purchasing insurance or outsourcing a high-risk component to a specialist vendor.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Enhance
Why it's wrong here
Enhance is an opportunity response.
- ✗
Exploit
Why it's wrong here
Exploit is an opportunity response.
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Same concept, more angles
7 more ways this is tested on PRINCE2F
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. Which of the following is a threat response type in PRINCE2?
hard- ✓ A.Avoid
- B.Reject
- C.Mitigate
- D.Exploit
Why A: PRINCE2 defines specific threat response types: avoid, reduce, fallback, transfer, accept, and share. 'Mitigate' is not a PRINCE2 term; 'reduce' is used instead.
Variation 2. Which of the following is a valid threat response in PRINCE2?
medium- A.Enhance
- ✓ B.Transfer
- C.Reject
- D.Exploit
Why B: PRINCE2 defines five threat responses: Avoid, Reduce, Fallback, Transfer, and Accept. 'Transfer' is one of these, representing the action of shifting the risk to a third party (e.g., insurance or contract). The other options — Enhance, Reject, and Exploit — are not valid threat responses; Enhance and Exploit are opportunity responses, and Reject is not defined in PRINCE2.
Variation 3. Which of the following is a threat response in PRINCE2?
medium- A.Enhance
- B.Exploit
- ✓ C.Share
- D.Reject
Why C: In PRINCE2, the 'Share' threat response is used to allocate ownership of a threat to a third party, such as through insurance or a contract, to reduce the impact on the project. This is distinct from risk responses for opportunities, as 'Share' is specifically listed as a threat response in the PRINCE2 guidance. Options A and B are opportunity responses, not threat responses.
Variation 4. Which THREE of the following are valid threat responses in PRINCE2?
hard- A.Enhance
- B.Exploit
- ✓ C.Reduce
- ✓ D.Avoid
- ✓ E.Transfer
Why C: In PRINCE2, threat responses are actions taken to address negative risks. 'Reduce' (also called 'Mitigate') is a valid response that aims to lower the probability and/or impact of a threat to an acceptable level. This is one of the five standard threat response categories defined in the PRINCE2 risk management practice.
Variation 5. Which THREE of the following are threat responses in PRINCE2?
hard- ✓ A.Transfer
- ✓ B.Reduce
- C.Enhance
- D.Exploit
- ✓ E.Avoid
Why A: Avoid, reduce, and transfer are threat responses. Exploit and enhance are opportunity responses.
Variation 6. Which TWO of the following are threat responses in PRINCE2?
medium- ✓ A.Avoid
- B.Exploit
- ✓ C.Reduce
- D.Share
- E.Reject
Why A: In PRINCE2, threat responses (for negative risks) are: Avoid (eliminate the threat by altering the plan), Reduce (lower the probability or impact), Fallback, Transfer, and Accept. From the options, 'Avoid' (A) and 'Reduce' (C) are threat responses. 'Exploit' (B) is an opportunity response. 'Reject' (E) is not a PRINCE2 term. 'Share' (D) is an opportunity response where the opportunity is shared with a third party to increase its chances; for threats, the equivalent is 'Transfer'. Therefore, Share is not a threat response.
Variation 7. Which THREE of the following are risk responses for a threat?
medium- ✓ A.Reduce
- ✓ B.Avoid
- C.Exploit
- ✓ D.Transfer
- E.Enhance
Why A: The five threat responses are: avoid, reduce, transfer, accept, share. Fallback is not a separate response; it is part of a plan.
JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This PRINCE2F practice question is part of Courseiva's free PeopleCert 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 PRINCE2F exam.