PMI Risk Management Professional (PMI-RMP) — Question 93

A project manager has determined that an activity is too complex to complete internally so they hire a licensed contractor to complete the work. What is the project manager performing in this situation?

Answer options

• A. Risk acceptance
• B. Risk transfer
• C. Risk avoidance
• D. Risk mitigation

Correct answer: B

Explanation

The project manager is transferring the risk associated with the complex activity to the licensed contractor by hiring them to complete the work, which is why 'Risk transfer' is the correct answer. 'Risk acceptance' implies acknowledging the risk without action, 'Risk avoidance' means eliminating the risk entirely, and 'Risk mitigation' refers to reducing the impact or likelihood of the risk, none of which apply in this case.