Which risk response option reduces probability or impact of a risk?

• A. Mitigation
• B. Transference
• C. Acceptance
• D. Exploit

Answer: (A)

Reducing the probability or impact of a risk is the aim of mitigation. By taking proactive actions—such as adding extra quality checks, redesigning a process, or implementing fail-safes—you lower either the chance the risk occurs or the severity of its effect if it does occur.

Transference shifts the risk to someone else, like purchasing insurance or outsourcing, so the risk is borne by another party rather than reduced. Acceptance means you acknowledge the risk and do nothing to change it, often planning contingencies rather than cutting the risk itself. Exploit focuses on turning a positive risk into an opportunity, not on reducing a threat.