Certified Associate in Project Management (CAPM) — Question 464

If you established a contingency reserve including time, money, and resources, how are you handling risk?

Answer options

• A. Accepting
• B. Transferring
• C. Avoiding
• D. Mitigating

Correct answer: A

Explanation

By establishing a contingency reserve, you are choosing to accept the risk, as you are preparing to deal with potential impacts rather than trying to eliminate the risk altogether. Transferring, avoiding, and mitigating are other risk management strategies, but they involve different approaches that do not include setting aside resources to deal with identified risks.