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Certified Associate in Project Management · PMI
Select one answer.
Written by other learners. Comments can disagree with the marked answer — check the official documentation when in doubt.
The correct answer is: D. Mitigating. Explanation: When you establish a contingency reserve (for time, money, and resources) to address potential issues, you are taking proactive steps to reduce the impact of risks — this is the definition of risk mitigation. Mitigating risk involves reducing the probability or impact of a threat. Contingency reserves act as a buffer to lessen the consequences if a risk materializes. Why not the others? A. Accepting: You do nothing to influence the risk; you simply acknowledge it may happen. B. Transferring: You shift the impact to a third party (e.g., through insurance or outsourcing). C. Avoiding: You eliminate the risk entirely, often by changing the project plan. Summary: Creating contingency reserves is a risk response strategy that reduces the impact of potential problems — this is mitigation. Correct answer: D. Mitigating.
A for sure
D is tempting (don't you use the resources to mitigate the risk?) but A seems to be more correct since contigency reserve is built-in resources that assumes risk will happen. If anyone has an explanation why D is wrong (why can't resources from contigency reserve be used to mitigate risk) I'd be interested to know.