PRINCE2 Threat Response Types: Avoid, Reduce, Transfer, Accept, Share
Which of the following is a valid threat response in PRINCE2?
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
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.
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, not a threat response, so it cannot address negative risk in PRINCE2. It is tempting because both risk types share the same response vocabulary, but the threat/opportunity axis determines which responses apply; enhance would be correct when exploiting a positive opportunity.
- ✓
Transfer
Why this is correct
Transfer shifts the threat's financial impact to a third party, such as an insurer or supplier, without altering the probability of the risk occurring. PRINCE2 recognises transfer as a valid response within its risk management approach, satisfying the scenario's requirement for a legitimate threat response.
- ✗
Reject
Why it's wrong here
Reject is an opportunity response in PRINCE2, applied when declining to pursue a positive opportunity, so it cannot answer a threat. It is tempting because the word suggests dismissing risk generally, but the threat/opportunity axis governs validity; reject would be correct for an opportunity the project chooses not to exploit.
- ✗
Exploit
Why it's wrong here
Exploit is a valid PRINCE2 threat response for opportunities, not threats, as it seeks to ensure a positive risk is realised by allocating resources to maximise its benefits. The question specifically asks for a threat response, and PRINCE2’s five threat responses are Avoid, Reduce, Fallback, Transfer, and Accept. Exploit is tempting because it mirrors the proactive logic of threat responses, but it belongs to the separate opportunity response category, where it would be correct for a scenario requiring capitalisation on an uncertain upside.
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Same concept, more angles
1 more way 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 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.