Free PMI Project Management Professional (PMP) Practice Question

Risk management options typically include risk avoidance, risk acceptance, risk mitigation, and risk transference. Risk avoidance involves eliminating the threat by removing the cause. Risk acceptance means acknowledging the risk and not taking any action unless the risk occurs. Risk mitigation reduces the probability and/or impact of the risk to an acceptable level. Risk transference shifts the impact of the risk to a third party, such as through insurance. Risk elimination, while desirable, is not a realistic option as it is often impossible to completely eliminate all risks from a project.