Quick Answer
The answer is Transfer. This is correct because hiring an external expert to manage a high-probability, high-impact risk shifts the financial and managerial responsibility for that risk to a third party via a contract, while the project team retains ownership of the overall risk. In the PMP exam, this scenario tests your ability to distinguish Transfer from Mitigate or Accept—a common trap is confusing outsourcing execution with reducing probability. The key distinction is that Transfer does not eliminate the risk; it merely assigns liability and response duties to an expert, often through fixed-price or service-level agreements. For the exam, remember the memory tip: “Transfer = Third-party liability, not elimination.” If you see a contract, warranty, or insurance in the question, think Transfer.
This PMP practice question tests your understanding of process — managing technical aspects. 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.
During a project, the team identifies a risk that could cause a major delay. The probability is high and the impact is high. The project manager decides to hire an external expert to manage the risk. Which risk response strategy is being used?
Mitigate
Why wrong: Mitigation reduces probability or impact, not transfers.
Accept
Why wrong: Acceptance means acknowledging the risk without action.
Avoid
Why wrong: Avoidance eliminates the risk entirely.
Transfer
Transfer shifts ownership of the risk to another party.
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
Hiring an external expert to manage the risk transfers the financial and managerial responsibility for that risk to a third party. This is a classic Transfer strategy because the project retains the risk but shifts the liability and response execution to the expert via a contract or service agreement. In technical projects, this often involves outsourcing specialized tasks like penetration testing or cloud migration to a vendor.
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.
Mitigate
Why it's wrong here
Mitigation reduces probability or impact, not transfers.
Accept
Why it's wrong here
Acceptance means acknowledging the risk without action.
Avoid
Why it's wrong here
Avoidance eliminates the risk entirely.
Transfer
Why this is correct
Transfer shifts ownership of the risk to another party.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
The trap here is that candidates confuse 'hiring an expert' with Mitigate, thinking the expert will reduce the risk, but the key distinction is that Transfer shifts responsibility and liability, while Mitigate keeps the risk within the team and reduces it through internal efforts.
Detailed technical explanation
In risk management, Transfer does not eliminate the risk; it shifts the ownership and financial consequences to another party, often through insurance, warranties, or fixed-price contracts. For example, in a software deployment, hiring a third-party load testing firm transfers the risk of performance bottlenecks to that vendor, but the project still suffers if the vendor fails. The PMBOK Guide distinguishes Transfer from Mitigate by noting that Transfer often involves a risk premium paid to the third party.
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 PMP 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
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FAQ
Process — Managing Technical Aspects — This question tests Process — Managing Technical Aspects — Read the scenario before looking for a memorised answer..
The correct answer is: Transfer — Hiring an external expert to manage the risk transfers the financial and managerial responsibility for that risk to a third party. This is a classic Transfer strategy because the project retains the risk but shifts the liability and response execution to the expert via a contract or service agreement. In technical projects, this often involves outsourcing specialized tasks like penetration testing or cloud migration to a vendor.
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 11, 2026
This PMP 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 PMP exam.
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