CAPM Practice Question: Project Management Fundamentals and Core Concepts
During project planning, the team identifies that a key component must be custom-built by a vendor with a long lead time. The project manager wants to avoid the risk of the vendor failing to deliver. Which risk response strategy is most appropriate?
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 most appropriate risk response strategy because it shifts the risk of vendor non-delivery to a third party (the vendor) through contracts, warranties, or insurance. Option B (Transfer) correctly addresses the risk by involving the vendor contractually. Option A (Accept) would involve acknowledging the risk without proactive action, which is not ideal when a specific vendor is critical. Option C (Avoid) would mean changing the project plan to eliminate the risk entirely, such as using a different component or building in-house, but that may not be feasible. Option D (Mitigate) would involve reducing the probability or impact of the risk, but transferring the risk through a contract is more direct and effective in this scenario.
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 it's wrong here
Accept is a passive strategy that involves acknowledging the risk and taking no proactive action. It is not the best choice here because the project manager wants to actively address the risk.
- ✓
Transfer
Why this is correct
Transfer is the most appropriate strategy because it shifts the risk of delivery failure to the vendor through a contract, warranty, or insurance. This aligns with the goal of avoiding the impact of vendor non-delivery.
- ✗
Avoid
Why it's wrong here
Avoid would involve changing the project plan to eliminate the risk, such as using a different component or vendor. This may not be feasible due to the custom requirement.
- ✗
Mitigate
Why it's wrong here
Mitigate involves reducing the probability or impact of the risk, for example by having a backup vendor or requiring progress reports. While helpful, transfer is more direct in shifting responsibility.
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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.