PRINCE2F PRINCE2 Practices Practice Question
Which risk response is appropriate for a threat that the project decides to mitigate by outsourcing?
⚠ Common exam trap
PRINCE2F often tests the confusion between 'transfer' and 'reduce' — candidates see 'outsourcing' and think it reduces risk, but the defining characteristic of transfer is shifting ownership/consequence to a third party, not lowering probability or impact.
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
Transfer is the correct response because outsourcing shifts the ownership and financial/operational impact of the threat to a third party (e.g., a vendor, insurer, or outsourced provider). In PRINCE2 risk management, 'transfer' does not eliminate the threat — it moves the consequence to another party, typically via contract, insurance, or outsourcing agreement. This matches the scenario where the project decides to outsource the risky work.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Reduce
Why it's wrong here
Outsourcing transfers the threat's ownership and impact to a third party, which is the Transfer response, not Reduce. It tempts because mitigation sounds like lowering probability or impact, but Reduce covers internal countermeasures; Transfer applies when another party bears the risk.
- ✗
Avoid
Why it's wrong here
Avoiding eliminates the threat by removing its cause, so outsourcing merely transfers it to a supplier under a different response. It tempts because avoidance suits threats with no tolerable exposure, where the activity is dropped or scope changed entirely.
- ✗
Accept
Why it's wrong here
Accepting means acknowledging the threat without action, whereas outsourcing actively shifts the risk to a supplier under a contractual arrangement. It tempts because outsourcing can feel like passive tolerance, but Accept is correct only when no response is justified and the risk is retained.
- ✓
Transfer
Why this is correct
Transfer shifts the financial impact and ownership of a threat to a third party, typically through outsourcing, insurance or contracts. Outsourcing the work means the supplier bears the risk, satisfying the stem's requirement for a response that mitigates a threat by moving it elsewhere.
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This PRINCE2F question is part of Courseiva's 1,189-question bank — original exam-style content with full explanations and wrong-answer analysis, never real exam questions or exam dumps. Learn why practice questions differ from exam dumps →
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 risk response is appropriate for a threat that can be mitigated by transferring the financial impact to a third party?
medium- A.Avoid
- B.Reduce
- ✓ C.Transfer
- D.Accept
Why C: Transfer is the PRINCE2 risk response that shifts the financial impact of a threat to a third party — typically via insurance, outsourcing, warranties, or contractual penalties. The threat still exists and may still occur, but the monetary consequence is borne by someone else, which is exactly what the question describes.
JA
Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official PeopleCert exam blueprint
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.