Quick Answer
The answer is transfer, because this risk response strategy shifts the financial burden of vendor delivery failure to the vendor through a fixed-price contract, warranty, or penalty clause. By transferring the risk, the project manager ensures that if the custom-built component is not delivered on time, the vendor—not the project—bears the cost of the failure. On the CAPM exam, this scenario tests your ability to distinguish transfer from mitigate, avoid, and accept; a common trap is choosing mitigate when the question emphasizes shifting liability rather than reducing probability or impact. Remember the mnemonic: "Transfer the trouble with a contract and a clause."
This CAPM practice question tests your understanding of project management fundamentals and core concepts. The scenario asks you to isolate a root cause — eliminate options that address a different problem before choosing. 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.
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?
Accept
Why wrong: Accepting the risk is passive and does not address the potential delay.
Transfer
Transfer shifts the risk to the vendor via contract, making them liable for delays.
Avoid
Why wrong: Avoiding would require eliminating the risk altogether, which is not possible without changing the project scope.
Mitigate
Why wrong: Mitigation would reduce probability/impact, but transferring the risk to the vendor is more appropriate.
Answer choices
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 best strategy because it shifts the risk of delivery failure to the vendor through a contract or warranty. Option B is correct. Option A (mitigate) would involve reducing the impact, but transfer is more effective. Option C (accept) is passive and not recommended. Option D (avoid) would mean not using the vendor, which may not be feasible.
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.
Accept
Why it's wrong here
Accepting the risk is passive and does not address the potential delay.
Transfer
Why this is correct
Transfer shifts the risk to the vendor via contract, making them liable for delays.
Related concept
Read the scenario before looking for a memorised answer.
Avoid
Why it's wrong here
Avoiding would require eliminating the risk altogether, which is not possible without changing the project scope.
Mitigate
Why it's wrong here
Mitigation would reduce probability/impact, but transferring the risk to the vendor is more appropriate.
Common exam traps
Many certification questions include familiar terms but test a specific constraint. Read the exact wording before choosing an answer that is generally true but wrong for this case.
Detailed technical explanation
This question should be treated as a scenario, not a definition check. Identify the problem, the constraint and the best action. Then compare each option against those facts.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
A practitioner preparing for the CAPM exam encounters this exact type of scenario on the job. The correct answer here is not the most general option — it is the best answer for the specific constraint described. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Real exam questions reward reading the full scenario before eliminating options, because the constraint defines which answer fits.
What to study next
Identify which CAPM exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
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FAQ
Project Management Fundamentals and Core Concepts — This question tests Project Management Fundamentals and Core Concepts — Read the scenario before looking for a memorised answer..
The correct answer is: Transfer — Transfer is the best strategy because it shifts the risk of delivery failure to the vendor through a contract or warranty. Option B is correct. Option A (mitigate) would involve reducing the impact, but transfer is more effective. Option C (accept) is passive and not recommended. Option D (avoid) would mean not using the vendor, which may not be feasible.
Identify which CAPM exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 24, 2026
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.
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