Risk Management Professional Exam Prep

Answer: A, B, C - Insurance, warranties and outsourcing are all risk transfer methods. Eliminating the threat and reducing the impact are forms of avoidance and mitigation respectively.

Key Takeaway: It’s intelligent as a project manager to outsource tasks sometimes to those who can handle it with more confidence. If your organization is uncertain of its competency in a task, outsourcing transfers the risk to someone who can handle it better.