PMI-RMP Certification Training - Transfer and Mitigate

The video tutorial covers two main risk response strategies: transference and mitigation. Risk transference involves shifting the impact and ownership of a risk to a third party, such as through insurance or subcontracting. It does not eliminate the risk but reduces the impact on the original party. Mitigation, on the other hand, aims to reduce the probability or impact of a risk through proactive measures. It is one of several strategies and should not be confused with risk response as a whole. Examples of mitigation include adopting less complex processes and designing redundancy into systems.

What is the primary purpose of transferring a risk?

• To eliminate the risk entirely

• To reduce the cost of the risk

• To shift the impact and management to a third party

• To increase the probability of the risk occurring

In the event planning example, what was the main benefit of having a backup indoor location?

• It allowed the event to proceed without additional costs

• It eliminated the risk of weather entirely

• It increased the number of attendees

• It reduced the cost of the event

Which of the following is NOT a characteristic of risk mitigation?

• Increasing the impact of a threat

• Proactively addressing potential issues

• Reducing the impact of a threat

• Reducing the probability of a threat

What is a common misconception about risk mitigation?

• It is less effective than other strategies

• It is the only threat risk response strategy

• It involves transferring risk to a third party

• It always increases the cost of a project

Which action is an example of risk mitigation?

• Purchasing insurance

• Ignoring potential risks

• Increasing project complexity

• Developing a prototype