PMP Process — Managing Technical Aspects Practice Question
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?
⚠ Common exam trap
Many 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.
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
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.
Answer analysis
Option-by-option breakdown
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 is a risk response strategy focused on reducing the probability of a negative risk event occurring or decreasing its potential impact if it does occur. This involves implementing proactive measures, such as process improvements, additional testing, or acquiring more reliable resources, to bring the risk exposure within acceptable thresholds. It does not involve shifting the responsibility or consequence of the risk to another party.
- ✗
Accept
Why it's wrong here
Risk acceptance is a strategy where the project team or stakeholders acknowledge the existence of a risk but decide not to take any proactive action to change its probability or impact. This approach is typically chosen when the potential impact is deemed low, the cost of other response strategies outweighs the potential benefit, or it's simply impractical to address. It involves a conscious decision to deal with the risk if and when it occurs.
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Avoid
Why it's wrong here
Risk avoidance is a proactive strategy that involves eliminating the threat entirely by changing the project plan, scope, or objectives to prevent the risk event from occurring. This might involve using a different technology, extending the schedule, or reducing the scope to bypass the conditions that would trigger the risk. The goal is to remove the risk from the project's exposure altogether, rather than just reducing its effect.
- ✓
Transfer
Why this is correct
Risk transfer is a strategy that involves shifting the ownership, responsibility, and often the financial impact of a threat to a third party, such as an insurer, vendor, or another project team. While the risk itself is not eliminated, the project's exposure to its consequences is significantly reduced because another entity now bears the burden. Common methods include purchasing insurance, outsourcing work with penalty clauses, or using warranties.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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