Certified in Risk and Information Systems Control (CRISC) — Question 1415

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 responsibility for the hardware work to another company, thus transferring the risk associated with that work. Mitigation involves reducing the impact or likelihood of a risk, Avoidance means eliminating the risk entirely, and Exploit refers to taking advantage of a positive risk, none of which apply in this scenario.