POE - I think Answer is B. The understanding of the risk with a detailed explanation of how the project intends to (mitigate or) address the potential for occurrence.
Sure, understanding the risk will help in the future with risk mitigation but that process itself isn't mitigating anything. The only answer here that is an actual mitigation action would be transferring, which would be A.
Risk mitigation
Attempts to reduce the probability or impact of a potential risk event to
an acceptable level. Mitigation may involve implementing a new course of
action in an effort to reduce the problem or changing the current
conditions so that the probability of the risk occurring is reduced.
Sometimes, when reducing the probability is not possible, the focus must
be on reducing the consequences of the risk event.
Risk mitigation is a risk strategy for negative risks whereby the project team reduces
the probability that the risk will occur or lessens the projected impact of the risk.
Pearson, 2018
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