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 threat response types in PRINCE2?
Enhance
Why wrong: Enhance is for opportunities.
Reduce
Reduce is a threat response.
Transfer
Transfer is a threat response.
Exploit
Why wrong: Exploit is for opportunities.
Avoid
Avoid is a threat response.
Answer choices
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, threat response types are designed to address negative risks (threats). 'Reduce' (also called 'Mitigate') involves taking action to lower the probability and/or impact of a threat to an acceptable level. 'Transfer' shifts the financial or contractual impact of a threat to a third party (e.g., insurance). 'Avoid' involves changing the plan to eliminate the threat entirely or protect the project from its impact. These three are explicitly listed in the PRINCE2 risk management practice.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
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 for opportunities.
Reduce
Why this is correct
Reduce is a threat response.
Related concept
Read the scenario before looking for a memorised answer.
Transfer
Why this is correct
Transfer is a threat response.
Related concept
Read the scenario before looking for a memorised answer.
Exploit
Why it's wrong here
Exploit is for opportunities.
Avoid
Why this is correct
Avoid is a threat response.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
PeopleCert often tests the confusion between threat and opportunity response types, where candidates mistakenly select 'Enhance' or 'Exploit' as valid threat responses because they sound like proactive actions, but PRINCE2 reserves them exclusively for positive risks.
Detailed technical explanation
PRINCE2 distinguishes between threat responses and opportunity responses. The five threat responses are: Avoid, Reduce, Transfer, Accept, and Share (for shared threats). The four opportunity responses are: Exploit, Enhance, Share, and Accept. 'Share' appears in both categories but with different contexts—for threats it involves partnering to manage downside risk, for opportunities it involves collaborating to realize upside potential. The PRINCE2 manual (Managing Successful Projects with PRINCE2) explicitly lists these in the risk management practice.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
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
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FAQ
PRINCE2 Practices — This question tests PRINCE2 Practices — Read the scenario before looking for a memorised answer..
The correct answer is: Reduce — In PRINCE2, threat response types are designed to address negative risks (threats). 'Reduce' (also called 'Mitigate') involves taking action to lower the probability and/or impact of a threat to an acceptable level. 'Transfer' shifts the financial or contractual impact of a threat to a third party (e.g., insurance). 'Avoid' involves changing the plan to eliminate the threat entirely or protect the project from its impact. These three are explicitly listed in the PRINCE2 risk management practice.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 30, 2026
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.
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