Question 1,474 of 1,731
PRINCE2 PracticeshardMultiple SelectObjective-mapped

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.

PRINCE2F PRINCE2 Practices Practice Question

This PRINCE2F practice question tests your understanding of prince2 practices. 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.

Which THREE of the following are risk responses for threats?

Question 1hardmulti select
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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.

Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.

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.

Common exam traps

Common exam trap: answer the scenario, not the keyword

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.

Detailed technical explanation

How to think about this question

PRINCE2 categorizes risk responses into two groups: those for threats (Avoid, Reduce, Transfer, Accept, Prepare Contingency) and those for opportunities (Exploit, Enhance, Share, Accept). The distinction is critical because applying an opportunity response to a threat could lead to increased exposure rather than mitigation. For example, 'Enhance' on a threat would mean actively trying to make the threat more likely or severe, which is the opposite of risk management intent.

KKey Concepts to Remember

  • Read the scenario before looking for a memorised answer.
  • Find the constraint that changes the correct option.
  • Eliminate answers that are true in general but not in this case.

TExam Day Tips

  • Watch for words such as best, first, most likely and least administrative effort.
  • Review why wrong options are wrong, not only why the correct option is correct.

Key takeaway

Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.

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.

Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.

Related practice questions

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FAQ

Questions learners often ask

What does this PRINCE2F question test?

PRINCE2 Practices — This question tests PRINCE2 Practices — Read the scenario before looking for a memorised answer..

What is the correct answer to this question?

The correct answer is: 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.

What should I do if I get this PRINCE2F question wrong?

Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.

What is the key concept behind this question?

Read the scenario before looking for a memorised answer.

About these practice questions

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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, Accept, and Share. 'Transfer' is a valid response to shift the risk to a third party.

Variation 3. Which of the following is a threat response in PRINCE2?

medium
  • A.Enhance
  • B.Exploit
  • C.Share
  • D.Reject

Why C: PRINCE2 lists avoid, reduce, fallback, transfer, accept, and share as threat responses. Exploit is an opportunity response.

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: Avoid and Reduce are threat responses. Exploit and Share are opportunity responses, and Reject is also an opportunity 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.

Last reviewed: Jun 30, 2026

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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.