Certified in Risk and Information Systems Control (CRISC) — Question 14

A part of a project deals with the hardware work. As a project manager, you have decided to hire a company to deal with all hardware work on the project. Which type of risk response is this?

Answer options

• A. Transference
• B. Mitigation
• C. Avoidance
• D. Exploit

Correct answer: A

Explanation

The correct answer is 'Transference' because you are shifting the risk associated with hardware work to another company. 'Mitigation' involves reducing the impact of the risk, 'Avoidance' means eliminating the risk entirely, and 'Exploit' is about taking advantage of a positive risk, which doesn't apply in this scenario.