According to the question, you are hiring a local expert team for casting the column. As you have transferred your risk to a third party, this is
the transference risk response that you have adopted. Transference is a strategy to mitigate negative risks or threats. In this strategy,
consequences and the ownership of a risk is transferred to a third party. This strategy does not eliminate the risk but transfers responsibility
of managing the risk to another party. Insurance is an example of transference.
Answer C is incorrect. Mitigation is a risk response planning technique associated with threats that seeks to reduce the probability of
occurrence or impact of a risk to below an acceptable threshold. Risk mitigation involves taking early action to reduce the probability and
impact of a risk occurring on the project. Adopting less complex processes, conducting more tests, or choosing a more stable supplier are
examples of mitigation actions.
Answer A is incorrect. Avoidance involves changing the project management plan to eliminate the threat entirely.
Answer B is incorrect. Acceptance response is a part of Risk Response planning process. Acceptance response delineates that the
project plan will not be changed to deal with the risk. Management may develop a contingency plan if the risk does occur. Acceptance
response to a risk event is a strategy that can be used for risks that pose either threats or opportunities. Acceptance response can be of two
types:
Passive acceptance: It is a strategy in which no plans are made to try or avoid or mitigate the risk.
Active acceptance: Such responses include developing contingency reserves to deal with risks, in case they occur.
Acceptance is the only response for both threats and opportunities.
