New Enroll in our GIC Finance Online Course Here!

    Register

    Question

    Which of the following is an example of a risk avoidance

    technique?
    A Implementing controls to reduce the likelihood of a risk occurring Correct Answer Incorrect Answer
    B Transferring the risk to another party Correct Answer Incorrect Answer
    C Accepting the risk and choosing not to take any action Correct Answer Incorrect Answer
    D Changing the project scope to eliminate the risk Correct Answer Incorrect Answer
    E Developing a contingency plan to deal with the risk Correct Answer Incorrect Answer

    Solution

    Risk transfer is a risk management technique that involves transferring the risk to another party. Outsourcing a task to a third-party vendor is an example of risk transfer.

    Practice Next

    Relevant for Exams: