CAPM Practice Question: Project Management Fundamentals and Core Concepts
During a project, the team identifies a risk that could cause a 20% increase in cost. The project manager decides to accept the risk because the probability is low. What risk response strategy is being used?
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
✓
Accept
Accept means acknowledging the risk and taking no proactive action, though contingency reserves may be set aside. Avoid changes the plan to eliminate the risk, transfer shifts the impact to a third party, and mitigate reduces probability or impact.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Accept
Why this is correct
Acceptance means acknowledging the risk and choosing to take no proactive action, retaining the potential 20% cost increase should it occur. Because the probability is low, the project manager deliberately tolerates the risk without mitigation, transfer or avoidance, matching the stem's stated decision.
- ✗
Transfer
Why it's wrong here
Transfer shifts the financial impact to a third party, typically through insurance, warranties or fixed-price contracts; no such arrangement was made here, and the project retained the exposure. Transfer would be correct had the team purchased cover or contracted another party to bear the cost overrun.
- ✗
Avoid
Why it's wrong here
Avoidance eliminates the risk by removing its cause or changing the project scope so the threat cannot occur; the project manager instead retained the risk and its potential 20% cost increase. Avoidance would be correct had the team dropped the risky deliverable or adopted a proven alternative approach.
- ✗
Mitigate
Why it's wrong here
Mitigate reduces probability or impact through action; the project manager here takes no action and simply tolerates the low-probability cost threat, which is acceptance. Mitigation is tempting because a 20% cost increase sounds worth addressing, and it would be correct if the team implemented contingency or reduction measures.
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JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This CAPM practice question is part of Courseiva's free PMI 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 CAPM exam.